The Total Crypto Market Cap (TOTALCAP) and Lido
DAO (LDO) have created bullish patterns.And the Bitcoin (BTC) price has generated bullish divergence in the weekly RSI.
There was some interesting crypto market news over the weekend.Firstly, the Bitcoin (BTC)
on-chain cost basis fell below $20,000 for the first time since 2020.The actual BTC price has been below its on-chain cost basis for nearly six months, the longest period of time in history.
Next, the disgraced founder of the now-bankrupt trading first Alameda Research and FTX
denied that he is the one moving funds from Alameda wallets, claiming he does not even have access to them.
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TOTALCAP Creates Bullish Pattern
The crypto market cap created a double bottom pattern (green icons) inside the $752 billion support area between Dec.18 and 30.The double bottom is considered a bullish pattern, meaning that it leads to upward movements most of the time.
Furthermore, the pattern was combined with bullish divergence in the six-hour RSI (green line), another sign associated with a bullish reversal.
Unsurprisingly, the cryptocurrency market cap began an upward movement after the second bottom and is now approaching the $770 billion resistance area.
If it is successful in moving above it, the next resistance would be at $810 billion.
On the other hand, a rejection from this area could lead to a re-test of the $752 billion support area.
Bitcoin Price Closes Slightly Bullish Week
The Bitcoin
price fell during the week of Dec 26 – Jan.2, creating a small bearish candlestick.The main resistance area is at $18,400, an area that has been validated as support (green icons) and resistance (red icon) numerous times.
Moreover, the BTC price is following a descending resistance line that coincides with the aforementioned horizontal resistance area.
However, the weekly RSI has generated bullish divergence, and its trend line is still intact.Since a bullish divergence in the weekly time frame is rare, this is considered a strong bullish sign.
As a result, whether the BTC price breaks out from its descending resistance line or loses its bullish divergence trend line instead will likely determine the direction of the future trend.
LDO Reaches Resistance
The LDO price broke out from and validated a descending resistance line as support on Nov.9 (green circle).
Afterward, it returned to validate it as support once more (green icon) on Dec.22 and began another upward movement.
The bounce also created a double bottom pattern.
The LDO price is now trading just below the $1.28 resistance area.If it is successful in breaking out, the next resistance would be at $1.75.
On the other hand, a rejection could lead to a fall toward $1.90.
For BeInCrypto’s latest crypto market analysis,
click here.
Disclaimer
BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information.You comply and understand that you should use any of this information at your own risk.Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions..
