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Bitcoin and many of the top-performing cryptocurrencies are heading towards breakout zones, such as the apex of triangles etc. Which way will they break?
Break up or break down? The moment of truth is soon arriving for bitcoin and certain cryptocurrencies. Which way they break is likely to determine their price action, at least in the short to medium term of the next few weeks.
Bitcoin to break soon
Bitcoin continues to respect an upwards trendline that has been in play, first as resistance, then as support, since the latter end of January. $28,000 is also starting to become a support over the last week or so, and so the area between this, and the massive overhead resistance at $29,000 is becoming more and more pinched as bitcoin is squeezed into this ever-narrowing space.
The latest triangle in which bitcoin is traversing starts from the local high at around $29,200, and is due to end in a maximum of 3 more days. A breakdown will potentially take it back to the strong support at $25,000, while a break to the upside could see the king of the cryptocurrencies go much higher.
Of course, it would probably require a few days above such a major level in order for bitcoin to confirm that it is going to turn this major resistance into support.
ETH to gain on BTC again?
Ethereum, second largest cryptocurrency by market cap, and approaching the tremendously important Shanghai upgrade in only two more days, is now perhaps starting to gain on bitcoin once more.
A gain for $ETH over $BTC of 6.6% in a period of 3 days just over a week ago has since seen a 3.7% correction. Whether $ETH will continue to gain on $BTC again may be dependent on just how many investors keep their $ETH staked post Shanghai.
Total market cap
The total market cap of all cryptocurrencies, including bitcoin and ethereum is steady at $1.149 trillion. If bitcoin and ethereum do break to the upside, the next resistance for the total market cap is at $1.2 trillion.
The all-time-high of $3 trillion appears to be a long way off, and with the U.S. looking like it's heading into recession, it will be very interesting to see how bitcoin and the crypto sector hold up.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.