The Total Crypto Market Cap (TOTALCAP) broke down from an ascending wedge. The 0.618 Fib retracement resistance level rejected the Bitcoin (BTC) price. Decentraland (MANA) dropped after completing a five-wave upward movement.
There was some positive crypto market news on Jan. 19. The OKX exchange published its proof of reserves report, showing that it has $7.5 billion in assets. It also pledged to release such reports each month.
The Securities and Exchange Commission (SEC) charged the former FTX CEO Sam Bankman-Fried for defrauding investors to the tune of $1.8 billion. Next, Polygon announced a partnership with BitGo in order to provide staking for MATIC holders.
Finally, in some negative news for futures traders, the ongoing crypto rally has liquidated $500 million in short positions.
TOTALCAP Breaks Down from Bearish Pattern
On Jan. 14, the crypto market cap broke out from a descending resistance line that had been in place since Aug. 15. Shortly afterward, it moved above the 0.618 Fib retracement resistance level at $916 billion.
Afterward, the crypto market cap began to trade inside an ascending wedge, which is considered a bearish pattern. Moreover, the six-hour RSI generated bearish divergence (green line).
On Jan. 18, the crypto market cap broke down from the wedge. It is now in the process of validating the $916 billion level as support. If it is successful in doing so, the upward movement could continue toward $1 trillion.
If not, the crypto market cap could fall toward the previous descending resistance line at $870 billion.
Bitcoin Gets Rejected From Fib Resistance
The Bitcoin price broke out from a descending resistance line on Jan. 12. After the breakout, it reached a high of $21,646 on Jan. 18.
The BTC price suffered a rejection from the 0.618 Fib retracement resistance level of $21,500 after generating bearish divergence (green line). It has been falling over the past 48 hours.
If the downward movement continues, the closest support area would be at the 0.382 Fib retracement support level of $19,650. On the other hand, a movement above the 0.618 Fib retracement resistance level at $21,500 would likely take the BTC price to $25,200.
Decentraland Completes Five-Wave Upward Movement
The Decentraland price has fallen since reaching a high of $0.76 on Jan. 17. The decrease led to a low of $0.61 on Jan. 20.
The entire previous increase looks like a completed five-wave upward movement. This is evident both by the Fib extension (black) and the bearish divergence in the RSI.
If the downward movement continues, the closest support levels would be at $0.58 and $0.52, created by the 0.382 and 0.5 Fib retracement support levels (white).
On the other hand, moving above the Jan. 17 high of $0.76 would mean that the trend is still bullish with a target price of $1.05.
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer
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