simply put
The total cryptocurrency market capitalization (TOTALCAP) fell after the daily RSI produced a bearish divergence but bounced back at support yesterday.
Bitcoin (BTC) price is attempting to recapture a significant level and Fibonacci resistance area from which it had previously diverged.
BONK has been rising rapidly in December. After a brief decline, the price hit a new all-time high yesterday.
Bitcoin (BTC) price and cryptocurrency market capitalization (TOTALCAP) rebounded yesterday, avoiding a break below support levels. BONK hit a new all-time high.
In today's news:
Bitcoin exchange and infrastructure provider Blockchain.com plans to expand the size of its workforce by 25%, with a focus on Europe.
Gemini users may only receive 61% of the value of their cryptocurrency since the platform filed for bankruptcy in January 2023.
TOTALCAP rebounds above rising support
TOTALCAP has been rising since late October, along with a rising support trendline. The uptrend reached a new yearly high of $1.63 trillion on December 9 but has since retreated.
Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and decide whether to accumulate or sell an asset.
A reading above 50 and in an uptrend suggests that bulls still have the upper hand, while a reading below 50 would suggest the opposite.
The daily RSI is above 50 and increasing despite being in overbought territory. However, the indicator had formed a bearish divergence (green line) before falling on December 11.
Regardless, the market cap rebounded yesterday and broke above the ascending support trendline.
Whether TOTALCAP breaks below the rising support trendline or hits a new yearly high will determine future trends.
A breakout could result in a 13% drop to the .382 Fib Retracement resistance level, which is pegged at $1.38 trillion. This would represent a 12.5% decrease from current levels.
On the other hand, a breakout above the yearly high could result in a 20% rally to the next resistance at $1.90 trillion.
Can Bitcoin Regain Resistance?
Similar to TOTALCAP, BTC price has been following an ascending support trendline since October. This rise resulted in a new yearly high of $44,730 on December 8.
Since then, BTC price dropped sharply on December 11, but regained its footing yesterday, rebounding at the trendline (green icon).
The decline was preceded by a bearish divergence (green) on the daily RSI. Additionally, BTC fell below the $42,450 resistance level before seemingly breaking out.
If BTC price reclaims this level and resumes its upward move, it could reach the next resistance at $49,000, which is 14% higher than the current price.
On the other hand, a breakout of the ascending support trendline could result in a 14% drop in the price to the .382 Fibonacci Retracement support at $37,200.
BONK hits record high
BONK price has been rising rapidly since December 1. This rise resulted in an all-time high of $0.000015 on December 9. However, BONK price fell after the RSI generated a bearish divergence.
Despite the decline, the price regained its footing yesterday and established a new all-time high, gradually above the first price. Both highs were formed at the 2.61 outside Fibonacci retracement level of the previous decline.
If BONK price continues to rise, it could surge by another 40% and reach the 3.61 external retracement level at $0.000018.
Despite the bullish BONK price prediction, a close below $0.000013 could result in a 60% price drop to the closest support level of $0.000005.
