The cryptocurrency market cap (TOTALCAP) collapsed from a parallel channel, while Bitcoin (BTC) and SUI fell after the rejection.
In the news today:
TOTALCAP finally collapses
The cryptocurrency market capitalization has been trading within an upward parallel channel since December 2023. These channels often contain corrective movements.
The resistance trend line of the channel rejected the price on January 11 (red icon) and has been declining since then. Yesterday, TOTALCAP broke the trend line supporting the channel.
The trend line also coincides with a long-term horizontal support level and the Fibonacci support level at $1.61 trillion, below which TOTALCAP closed.
If TOTALCAP continues to decline, it could fall another 12.60% to the nearest support at $1.40 trillion.
Despite this bearish TOTALCAP forecast, reclaiming the $1.61 Trillion area and the channel's support trend concession could lead to a 33% rally to the next resistance at $2.10 Trillion.
Read more: Where to Trade Bitcoin Futures
Bitcoin falls after the collapse
Like TOTALCAP, BTC price has been trading within a bullish parallel channel since December. However, Bitcoin broke out of the channel on January 12, 2024. This is a sign that the upward movement has ended.
After rejecting the channel support trend line on January 16, Bitcoin resumed its downward movement yesterday, falling to a low of $40,705.
If the decline continues, Bitcoin could fall 9% to the nearest support area at $38,000.
Despite this bearish BTC price prediction, reclaiming the channel support trend line will lead to a reversal. After that, Bitcoin could rise approximately 136% to the channel resistance trend line at $48,250.
Read more: What is a Bitcoin (BTC) ETF?
SUI falls ahead of all-time high
The price of SUI has risen rapidly since the beginning of the year. The increase led to a high of $1.45 on January 15. However, SUI was rejected by the $1.40 resistance area and has declined since then. The rejection occurred before SUI reached a new all-time high.
If the decline continues, SUI could fall by 20% to the nearest support area at $0.90.
Despite this bearish prediction for SUI price, a strong bounce at the current level could lead to a 23% rally to the next resistance at $1.40.
Read more: 13 Best Altcoins to Invest in January 2024
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