Why Is the Crypto Market Up Today?

The Bitcoin (BTC) price and the Crypto Market Cap (TOTALCAP) bounced yesterday, saving potential breakdowns from support levels. BONK reached a new all-time high.

In the news today:

• Bitcoin exchange and infrastructure provider Blockchain.com plans to expand its workforce by 25%, focusing on Europe.
• Gemini users may receive only 61% of their crypto value from when the platform filed for bankruptcy in January 2023.

TOTALCAP Bounces Above Ascending Support

TOTALCAP has increased alongside an ascending support trend line since the end of October. The upward movement culminated with a new yearly high of $1.63 trillion on December 9, but it has fallen back some since.

Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.

Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite.

The daily RSI is above 50 and increasing despite being in overbought territory. However, the indicator has generated a bearish divergence (green line), preceding the decrease on December 11.

In any case, the market cap bounced yesterday, saving the breakdown from the ascending support trend line.

Whether TOTALCAP breaks down from the ascending support trend line or reaches a new yearly high will determine the future trend.

TOTALCAP Daily Chart. Source: TradingView

A breakdown can lead to a 13% decrease to the 0.382 Fib retracement resistance level at $1.38 trillion. This will be a decrease of 12.5% from the current level.

On the other hand, a movement above the yearly high can initiate a 20% increase to the next resistance at $1.90 trillion.

Can Bitcoin Reclaim Resistance?

Similarly to TOTALCAP, the BTC price has followed an ascending support trend line since October. The upward movement led to a new yearly high of $44,730 on December 8.

Afterward, the BTC price fell sharply on December 11 but regained its footing yesterday, bouncing at the trend line (green icon).

The decrease was preceded by a bearish divergence (green) in the daily RSI. Also, BTC fell below the $42,450 resistance after seemingly breaking out before.

If the BTC price reclaims this level and resumes its ascent, it can reach the next resistance at $49,000, 14% above the current price.

BTC/USD Daily Chart. Source: TradingView

On the other hand, a breakdown from the ascending support trend line can lead to a 14% decrease to the 0.382 Fib retracement support level at $37,200.

BONK Reaches New All-Time High

The BONK price has increased swiftly since December 1. The increase led to a new all-time high of $0.000015 on December 9. However, the BONK price fell after the RSI generated a bearish divergence.

Despite the drop, the price regained its footing yesterday and reached a new all-time high, incrementally above the first one. Both highs were made at the 2.61 external Fib retracement of the previous decrease.

If the BONK price continues its ascent, it can increase by another 40% and reach the 3.61 external retracement at $0.000018.

BONK/USDT Daily Chart. Source: TradingView

Despite this bullish BONK price prediction, a close below $0.000013 can lead to a 60% decrease to the closest support at $0.000005.

For BeInCrypto‘s latest crypto market analysis,  click here .