Why Is the Crypto Market Up Today?

The Bitcoin (BTC) price and the Crypto Market Cap (TOTALCAP) are trying to bounce inside long-term support levels. BEAM attempts to break out from an ascending triangle.

In the news today:

TOTALCAP Attempts to Bounce at Support

The cryptocurrency market cap has increased swiftly since October, when it bounced at the support trend line of an ascending parallel channel (green icon).

The upward movement caused a breakout from the channel on December 4 and a breakout from the $1.61 trillion resistance area shortly afterward.

TOTALCAP reached a high of $1.81 trillion on January 11 but failed to sustain its increase. Rather, it created a long upper wick (red icon) and returned to the $1.61 trillion support. It seemingly began a bounce this week.

Whether the price closes below support or bounces instead can determine the future trend’s direction.

Crypto Market Cap (TOTALCAP) Movement
TOTALCAP Weekly Chart. Source: TradingView

A close below support and fall inside the channel can trigger a 16% decrease to the channel’s midline at $1.40 trillion. Conversely, a bounce can cause a 30% increase to the next resistance at $2.10 trillion.

Bitcoin Trades Inside Support

Like TOTALCAP, the BTC price has increased rapidly since October. The movement caused a breakout above the 0.5 Fib retracement resistance level at $42,300.

After the price consolidated above the area, it began another upward movement, reaching a high of $49,970 last week.

However, BTC failed to sustain its upward movement and fell afterward, creating a bearish, shooting star candlestick (red icon). BTC trades inside the 0.5 Fib retracement support level at $42,300 and attempts to bounce this week.

Bitcoin (BTC) Price Movement
BTC/USDT Daily Chart. Source: TradingView

Whether it breaks down or bounces can determine the future Bitcoin trend. A breakdown can trigger a 28% BTC price drop to the next support at $30,600, while a bounce can cause a 20% increase to $51,000.

BEAM Attempts Breakout

The BEAM price has increased alongside an ascending support trend line since the start of January. While doing so, it attempted to break out above the $0.022 resistance area.

Combined, these create an ascending triangle, considered a bullish pattern. After a failed breakout attempt, BEAM moved above the resistance area early today.

A breakout that travels the entire pattern’s height will take BEAM to $0.030, a nearly 35% increase.

BEAM Price Movement
BEAM/USDT Six-Hour Chart. Source: TradingView

Despite this bullish price prediction, a close below $0.022 will invalidate the breakout and lead to a 17% drop to the ascending support trend line at $0.019.

For BeInCryptos latest crypto market analysis, click here.


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. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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