Why the Crypto Market Is Up Today
The Bitcoin (BTC) price and the Crypto Market Cap (TOTALCAP) are hovering above support. NEAR Protocol (NEAR) is approaching its yearly high.
In the news today:
TOTALCAP Hovers Above Support
The cryptocurrency market cap has increased alongside an ascending support trend line since October. The upward movement led to a high of $1.63 trillion on December 9.
However, the price fell sharply afterward, accelerating its decrease on December 11.
Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset. Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite.
The decrease was preceded by a bearish divergence (green) in the daily RSI. A bearish divergence occurs when a momentum decrease accompanies a price increase. It often leads to bearish reversals, as was the case with TOTALCAP.
While TOTALCAP bounced on December 18, creating a bullish candlestick, it created a bearish one the next day (red icon). TOTALCAP trades just above the ascending support trend line.
A breakdown can lead to a 12% drop to the 0.382 Fib retracement support level at $1.38 trillion. On the other hand, increasing above $1.63 trillion can lead to a 20% increase to the next resistance at $1.90 trillion.
Read More: 7 Must-Have Cryptocurrencies for Your Portfolio Before the Next Bull Run
Bitcoin Saves Breakdown
Similarly to TOTALCAP, the BTC price has increased alongside an ascending support trend line since October. The upward movement culminated with a new yearly high of $44,729 on December 8.
The price fell after the RSI generated a bearish divergence (green).
While BTC initially fell below the ascending support trend line, it saved the breakdown with a strong bounce on December 19 (green icon), which created a bullish candlestick. However, the price created a bearish candlestick the next day.
Whether the BTC price breaks down from the support trend line or instead resumes the bounce, reaching a new yearly high will likely determine the future trend.
A breakdown can cause a 12% decrease to the 0.382 Fib retracement support level at $37,800, while a new yearly high can trigger a 14% upward movement to the next resistance at $48,800.
Read More: 9 Best Crypto Demo Accounts For Trading
NEAR Approaches Yearly High
The NEAR price has increased rapidly since October. While the price was initially rejected by the 0.618 Fib retracement resistance level (red icon) on November 20, it regained its footing afterward and resumed its increase in December.
Today, NEAR is breaking out from the $2.70 horizontal resistance area, which has been in place since the start of the year. The altcoin trades slightly below the yearly high of $2.85.
If NEAR breaks out above this level, it can increase by 22% to the next resistance at $3.40.
Despite this bullish NEAR price prediction, a daily close below the $2.75 area can trigger a 20% decrease to the closest support at $2.20.
For BeInCrypto‘s latest crypto market analysis, click here.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
