The Bitcoin (BTC) price and the Crypto Market Cap (TOTALCAP) both resumed their downward movement recently. BONK has also fallen after achieving a record high.
TOTALCAP’s Descent After Yearly High The cryptocurrency market cap has been swiftly climbing since October, following an upward trendline and reaching a peak of $1.63 trillion on December 9. However, it experienced a sharp decline afterward, notably accelerating on December 11. Currently, TOTALCAP is trading at its ascending support trend line.
Traders often refer to the RSI as a momentum gauge to assess overbought or oversold conditions. Readings above 50 and a rising trend typically favor bullish momentum, while readings below 50 indicate the opposite.
The recent decline was preceded by a bearish divergence in the daily RSI, typically signaling a reversal. If TOTALCAP breaks below the ascending support trend line, it could potentially drop by another 9% to hit the 0.382 Fib retracement support level at $1.38 trillion. Yet, surpassing the yearly high of $1.63 trillion might signal the correction’s end, possibly pushing it to the next resistance at $1.90 trillion.
Bitcoin’s Deviation Above Resistance Following a similar trend to TOTALCAP, BTC has been climbing with an ascending support trend line since October, hitting a new high of $44,730 on December 8. However, it faced a subsequent decline starting on December 11, preceded by a bearish divergence in the daily RSI.
A crucial development is BTC’s deviation above the 0.5 Fib retracement resistance at $42,450. Whether it reclaims this level or continues downward will determine its trajectory. A breakdown from the support trend line could lead to a 10% decrease to the 0.382 Fib retracement support at $37,200. Conversely, reclaiming $42,450 could drive a 20% increase to the next resistance at $48,800.
BONK’s Fall Post Divergence BONK’s price surged significantly since October, hitting a new all-time high of $0.000015 on December 9, matching the 2.61 external Fib retracement level. Like BTC and TOTALCAP, its decline was preceded by a bearish divergence in the daily RSI.
If the downward trend persists, the price could potentially fall by 50% to revisit the previous all-time high at $0.000005. However, a sudden reversal could prompt a 50% increase, retesting the all-time high level.
