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Technical Analysis

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

Updated: Aug 27, 2024
Published: Aug 14, 2024
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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.
Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.


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