Since the beginning of 2023, the cryptocurrency market cap has been on the rise within an ascending parallel channel. In December 2023, an upward surge resulted in a breakout, reaching a peak of $1.73 trillion last week. Although this high surpassed the 0.382 Fib retracement and the $1.61 trillion horizontal resistance, TOTALCAP failed to close above, forming a long upper wick and a bearish close.
Despite the dip, TOTALCAP confirmed the resistance line of the previous ascending parallel channel. The upcoming trend hinges on whether TOTALCAP remains within the channel or breaks above the $1.61 trillion resistance.
A breakout’s success may propel a surge of over 30%, reaching $2.10 trillion, whereas descending into the channel could prompt a 15% decline to the midline, resting at $1.37 trillion.
Bitcoin Attains a Horizontal Resistance Level
Similar to TOTALCAP, the price of BTC has risen since the beginning of 2023, reaching a recent peak of $45,879. Although BTC surpassed the 0.5 Fib retracement resistance at $42,300, it did not achieve a close above the long-term resistance at $46,000.
Despite a decline and the presence of a long upper wick (red icon), BTC concluded with a bullish close. The forthcoming trend may hinge on whether the BTC price breaks above the $46,000 resistance or descends below the $42,300 Fib level, now acting as support.
A breakout has the potential to initiate an 18% upswing towards the subsequent resistance at $52,000, whereas a breakdown could result in a 15% decline to the nearest support, resting at $37,300.
