There has been a resurgence in the cryptocurrency market for the past two weeks, with Bitcoin, Ethereum, and the crypto total market cap currently up 3.81%, 6.94%, and 2.84% respectively this week. But just how high is this short-term bullish rally going to go?
Currently, at $813 billion, the crypto total market cap is trying to break out from a 4-week range of $727 billion to $824 billion. With the move for the past two weeks not confirmed by volume, a market correction might be imminent. Here's why.
RSI40 has been showing a lot of significance this year with the area previously acting as both support and resistance. As of writing, the crypto total RSI is at 37.19. Traders should assume that a reaction around this area is highly likely.
Recently, the volume has been slowly decreasing and the moving averages are trading close to each other. If this continues, traders should look out for a possible bearish crossover.
There are several key levels to look out for in the crypto total market cap charts. If the price successfully breaks out from the range of $727 billion to $824 billion and RSI40, the next target is breaking $850 billion to $860 billion. RSI50 must also be reclaimed. If the price goes further, traders should look for the EMA20 and the descending trendline for the next possible resistance.
After Federal Reserve Chair Jerome Powell implied that the central bank would decelerate its rate-hiking campaign, stocks rallied broadly. The S&P 500 rose 3.09%, the Dow Jones Industrial Average gained 2.18%, and the Nasdaq Composite advanced 4.41%. The Russell 2000, which is made up of smaller companies, rallied 2.72%.
Powell's comments gave investors hope that the central bank is done raising rates and could even lower them ifRead more on cryptonews.com