Technical Analysis

Crypto market cap nears $2.12T: Can it soar to $2.4T next?

Updated: Aug 27, 2024

Published: Aug 14, 2024

TOTAL (Total Market Cap)

Current state: In the past few days, we've observed a recovery push on the upside for the majors, with BTC moving back into the $60k region, testing key areas of the bull flag, and then retracing slightly. This price action is reflected in TOTAL, where the $2.12T level has emerged as a significant resistance, bolstered by the presence of the 200 EMA just above it.

Key observations

Resistance: The $2.12T region is currently acting as a major resistance, with the 200 EMA (Exponential moving average) adding to the strength of this barrier. This level is critical for defining the upper boundary of the current price channel.
Support: On the downside, there is now a solid support base around $1.9T, which could be tested in the coming days if the market continues to cool off.
Potential scenarios:
1. Bullish continuation: If the market can gather momentum and flip the $2.1T region, it would place the price in the upper channel of the bull flag, creating space for a move towards the $2.4T region. This would represent approximately a 15-20% space for further upward movement.
2. Pullback and retest: If the market faces further downside pressure, we may see a pullback to the $1.9T support level. This area would likely provide a strong base for the next leg up, allowing for a renewed attempt to test and break the $2.1T resistance.

Chart showing the crypto total market cap with key trend lines and levels, highlighting price movements and EMA levels

Conclusion

The market is at a pivotal point where the battle between resistance at $2.12T and support at $1.9T will determine the next major move. Flipping the $2.1T resistance will be crucial for unlocking further upside potential, while a pullback to $1.9T could provide a strategic accumulation zone before another attempt to break higher.