Why the Crypto Market Is up Today

Why Is the Crypto Market Up Today?
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The Total Crypto Market Cap (TOTALCAP) is attempting to validate a critical horizontal level as support. The Bitcoin (BTC) price and Aptos (APT) price broke out from descending resistance lines.

There was some interesting crypto market news on Jan. 9. After a wait of more than two years, the Flare Network airdrop was finally distributed. 4.23 billion FLR tokens were distributed immediately, while the remaining 24 billion will be distributed in monthly increments over the next 36 months. And the government of France is proposing to speed up its regulation process by pushing for mandatory crypto licensing.

In more negative news, Crypto.com is in trouble as the U.K. watchdog has accused it of violating advertisement laws by posting misleading advertisements.

TOTALCAP Bounces at Crucial Level

The crypto market cap created a double bottom pattern inside the $752 billion support area between Dec. 18 and 30. The double bottom is considered a bullish pattern, meaning that it leads to upward movements most of the time. Furthermore, the pattern was combined with bullish divergence in the RSI (green line). The RSI is now overbought but has not generated any bearish divergence.

Phemex

The crypto market cap began an upward movement shortly afterward and broke out from the $770 billion resistance area on Jan. 4. On Jan. 6, the crypto market cap bounced at the confluence of the $770 billion area and the ascending support line (green icon). This accelerated the upward movement toward the next resistance at $807 billion, which is both the 0.618 Fib retracement resistance level and a horizontal resistance area.

On Jan. 10, the cryptocurrency market cap broke out from the $807 billion area and is now in the process of validating it as support. If it is successful in doing so, it could increase to the next resistance at $844 billion. If it falls below the $807 billion area, it could decrease to the ascending support line at $790 billion.

Crypto market cap (TOTALCAP)
TOTALCAP/USDT Six-Hour Chart. Source: TradingView

Bitcoin Breaks out

The Bitcoin price broke out from a descending resistance line on Jan. 6. The next day, it also moved above the $17,000 horizontal resistance area. Expect the area to provide support in case of a downward movement.

If the upward movement continues, the next resistance would be between $17,500 – $17,575. This is created by the 0.618 Fib retracement resistance level and a horizontal resistance area.

If the upward movement fails or BTC gets rejected at the $17,500 – $17,575 resistance, the Bitcoin price could re-test the $17,000 level once more.

Bitcoin (BTC) Price Breakout
BTC/USDT Six-Hour Chart. Source: TradingViewI

APT Pushes Through Resistance

The APT price has fallen below a descending resistance line since reaching an all-time high in Oct. 24. The downward movement led to a low of $3.06 on Dec. 29.

Afterward, the price began an upward movement and broke out from the line on Jan. 4 and the $4 resistance area on Jan. 9. It increased by 40% the same day, reaching a high of $5.70. The APT price is now attempting to reach a close above the $5.40 resistance area.

If it is successful in moving above it, the APT price could increase to the next resistance at $7.80. On the other hand, a rejection could lead to a re-test of the $4 support area.

Aptos (APT) Price Movement
APT/USDT Daily Chart. Source: TradingView

For BeInCrypto’s latest crypto market analysis, click here.

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.



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