The total market cap of cryptocurrencies (TOTALCAP) is trading within a rising wedge. Bitcoin (BTC) price is trying to move above 0.618 Fibonacci retracement level, while Shiba Inu (SHIB) broke the bearish trend line.
Despite the bear market, the number of developers flocking to the crypto industry is increasing day by day, according to reports. At the end of 2022, there were 24,000 developers working on crypto networks and projects, compared to just 12,000 in 2021.
German digital bank N26 is expanding to offer more cryptocurrency trading services to several European countries. Finally, the World Economic Forum (WEF) will test a digital version of Davos, the Swiss Alpine city hosting the event.
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TOTALCAP is in a bearish pattern
Last Saturday (14th), the total cryptocurrency market cap broke the downtrend line that had existed since August 15th. Soon after, it rebounded from the 0.618 Fibonacci retracement level at $916 billion.
Currently, TOTALCAP is trading inside the rising wedge, which is a bearish pattern. Moreover, the pattern is combined with a bearish divergence on the RSI (green line).
If the total cryptocurrency market cap falls below this wedge, it could revert to the previous resistance line at $870 billion. On the other hand, the breakout could mean that the trend is still bullish and could lead to highs close to $1 trillion.
Bitcoin hits resistance
Bitcoin price has been inside a parallel ascending channel since November 21. Last Friday (13th), I managed to break out of this chart pattern and reached a high of $21,475 three days later.
A breakout of such channels usually means that the upward move is impulsive, as was the case with Bitcoin. However, the price still did not recover the 0.618 Fibonacci retracement level at $21,530.
The 4-hour chart’s RSI has formed a bearish divergence (green line). This is a signal that often precedes a price drop. The fact that it is performing well at the 0.618 retracement level adds to its importance.
Therefore, BTC price is likely to drop towards 0.382 (white) Fibonacci retracement level at $19,500. However, as long as it does not fall below the 0.618 retracement level at $18,300, the trend remains to the upside.
On the other hand, a break above the 0.618 resistance will accelerate the move higher.
SHIB breaks the resistance line
SHIB has been in an upward trend since December 29th. The price broke the downtrend line last Friday and reached a high of $0.0000128 five days later.
If the current rebound continues, the nearest resistance will be found at $0.0000135. A move above this level can accelerate its upward movement.
On the other hand, a decline from the area may lead to a retest of the downtrend line.
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