Crypto Market Cap (TOTALCAP) is trading within a parallel channel while Bitcoin (BTC) has broken down in the parallel channel. THORChain (RUNE) has been falling since December 4, 2023.
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TOTALCAP Channel Internal Transactions
The cryptocurrency market capitalization has been trading within an upward parallel channel since December 2023. These channels often contain coordinating movements.
The channel’s resistance trendline rejected price (red icon) on January 11 and has since declined. It is currently trading close to the support trend line.
The trend line is also consistent with the long-term horizontal and Fib support level of $1.61 trillion, which currently acts as support.
Whether TOTALCAP falls below this level or rebounds may determine the direction of the trend going forward.
A retracement below the confluence of support could lead to a 15% decline to the nearest support at $1.4 trillion.
On the other hand, a strong bounce and breakout in the channel could lead to a 30% increase to the next resistance level of $2.1 trillion.
Read more: Where to trade Bitcoin futures
Bitcoin detached from channel
Like TOTALCAP, BTC price has been trading within an upward parallel channel since December. However, BTC broke out of the channel on January 12, 2024. This is a signal that the upward movement is over.
Currently, BTC is trading below the channel’s support trendline, which could potentially validate it as resistance. The trend is bearish until Bitcoin reclaims the channel’s support trend line.
The most likely scenario is a 12% decline in BTC to the nearest support level at $37,700.
Despite this bearish BTC price prediction, reclaiming the channel’s support trendline means a reversal is underway. BTC could then increase by almost 13% to the channel resistance trendline at $48,250.
Read more: What is a Bitcoin (BTC) ETF?
The gradual decline in RUNE continues
RUNE price fell below the downward resistance trend line from December 4, 2023. The trend line has been verified several times, most recently on January 11th (red icon). This led to rejection and accelerated downward mobility.
RUNE also fell below the $5.20 horizontal support area during the decline. Combined with a resistance trendline, it creates a descending triangle, which is considered a bearish pattern.
A decline moving the entire triangle high would result in a 30% drop to the next support at $2.90.
Despite this bearish RUNE price prediction, a breakout of the resistance trendline means the trend is still bullish. RUNE could then increase by 40% to the next resistance at $6.
Read more: 13 Best Altcoins to Invest in January 2024
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