๐ Daily TA: Crypto Market Cap (CRYPTOCAP/USD) | 28-11-2021
All Time HIVE and hodl, dear members of LeoFinance!
Today, I would like to show you something interesting on the chart of the Total Cryptocurrency Market Capitalization.
So, in the weekly chart (1W), CRYPTOCAP/USD has formed a Cup and Handle (C&H) technical pattern: As can be seen from the chart, a breakout took place recently - the chart has surpassed the upper line of the C&H. After that, the chart formed a new all-time high (marked as a local high in the chart above). However, now, because of the ongoing correction the chart is declining and is starting to test the upper line of the C&P. I expect this line to serve as solid support. Also, I would like to explain that, according to the Technical Analysis theory, if the price receives enough support from this line, rebounds, and surpasses the last local high then a solid bullish signal will occur. In this case, many investors and traders will enter the market and open long positions.
Next, let us have a look at the daily chart (1D), where we have a bullish trend, according to the three key Moving Averages (MAs). The 30-day MA (MA 30), the 90-day MA (MA 90), and the 360-day MA (MA 360) are heading upwards - a confirmation of the bullish trend: Moreover, there is a bullish distribution of the MAs as well - at the top is MA 30 then, in the middle, is MA 90, and at the bottom is MA 360. Nevertheless, the bulls should be very cautious because the chart has dropped below MA 30. Right now, it is consolidating at MA 90. If the market receives enough support from MA 90 and rebounds, then I will wait for the chart to surpass again MA 30 in order to receive a buy signal. Right now, when the chart is below MA 30 I prefer to remain in wait-and-see mode.
Next, let us have a look at the 4-hour chart (4H), where the Crypto Market Capitalization chart continues to move within the Ascending channel (uptrend). So, in other words, the uptrend remains in place: However, as can be seen from the chart, right now, the chart is testing the lower line of the channel. That's why the bulls should be very cautious. A buy signal will occur only if the chart receives enough support from the lower line of the channel, rebounds, and starts to resume the upward movement.
For this, I will also keep an eye on the 1-hour chart, where the market is in a phase of correction - CRYPTOCAP/USD is moving downwards within the Descending channel (downtrend): In order for the bullish sentiment to return in the 1-hour time frame, the chart should exit the Descending channel in the upward direction. In this case, in the 4-hour chart, CRYPTOCAP/USD will resume the uptrend, and, probably, in the daily chart, the price will surpass MA 30. In this case, we will have an alignment of the bullish signal in the major time frames. And this will make the bullish signal more reliable.
To be continued ...
As of the time of writing, the Cryptocurrency Market Cap is circa $2,43 billion, according to TradingView.
A few words about me:
Just to let you know: I've been working professionally as a currency analyst for the last 15 years, and as a cryptocurrency analyst for the last 4 and a half years.
Important!
Keep in mind, that thoughts expressed here are my own, and they should not be regarded as recommendations for any cryptocurrency/commodity trades, investments and etc.
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