Total capitalization (TOTALCAP) broke through a short-term descending resistance line and gradually increased towards a long-term line.
Total cryptocurrency market capitalization, TOTALCAP, has fallen below a descending resistance line from its all-time high of $ 3 trillion (3 trillion) reached in November 2021. The move to the downside led to a low of $ 762. billion reached in June. This low combined with an all-time low of 27 in the weekly RSI.
TOTALCAP has been growing since then, surpassing $ 1 trillion on July 29th. This also caused the RSI to exit the oversold territory (green arrow).
If the bullish move continues, the closest resistance would be at $ 1.30 trillion. This is a horizontal resistance zone which also coincides with the aforementioned descending resistance line.
The current course of the course
The daily chart presents a bullish outlook which supports the continued upward movement.
First, the TOTALCAP broke through a descending resistance line. It then broke through the $ 960 billion horizontal zone and validated it as a support (green arrow). Finally, the RSI has bounced off the 50 line and is currently at 63. All of these are seen as signs of an uptrend.
Also, the daily chart elevates the importance of the $ 1.30 trillion resistance zone, knowing that in addition to being a horizontal resistance, it can be seen that it is also the 0.382 Fibonacci retracement resistance.
TOTALCAP wave count analysis
The cryptocurrency trader @Thetradinghub shared a graph of cryptocurrency market cap on Twitter, stating that it is mired in a long-term symmetrical triangular pattern.
The more plausible wave count suggests that TOTALCAP is in the fourth wave of a five wave uptrend that started in March 2020. If a low was reached in June 2020, wave four would be 0.9: 1 compared to wave two. Conversely, if the bottom has not yet been reached, they would have the same length.
So if wave four evolves into a triangular pattern, it would be significantly longer than wave two.
This opens up the possibility that wave four is already complete, with a corrective structure in ABC (in black).
Either way, it looks like another upward move towards a new all-time high is about to take place.
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