$TOTAL Crypto Total Market Cap chart - up or down?

17 พ.ค. 2021

Amongst all the news flow driving these cryptocurrency markets in the last week which seems to be creating a lot of FUD amongst the community, I thought it would be prudent to set aside the noise and look at the total market capitalization chart to try and identify what is happening behind the scenes in the crypto world.

From this chart you can see the chart has broken down from a Head & Shoulders formation which projects a target at approximately 1.8 trillion dollars. For now the market has bounced off the uptrend support line which has been in play since the start of the year largely on the back of the tweet from Elon Musk this morning where he informed us that Tesla has not sold any more bitcoin. Is this bounce sustainable or will we still proceed to meet the head & Shoulders target down at 1.8 trillion? If we do get this low I would expect a bounce but the bulls will then have a mighty battle on their hands as the uptrend support would have given way. For now, I will be closely watching if we manage to re-test the neckline of the Head & Shoulders formation and will observe how price reacts at the 2.12 trillion dollar level. If price rejects at the neckline (2.12 trillion) and starts to retreat then we could argue that the market will most likely move lower to complete the Head & Shoulders price objective at 1.8 trillion. Alternatively, if the price manages to reclaim and invalidate the Head & Shoulders formation, then I would see that as extremely bullish development for crypto markets in general and we should proceed to new highs.

As always, anything can happen and we will just need to wait and see what the market wants to do before making our next move.

Hope you enjoyed this analysis!