CRYPTO MARKET CAP NEARS 200W MA! PRE-CRASH VIBES?

24 sept

Hello, fellow traders! Today, I'd like to share an intriguing analysis of the Crypto Total Market Cap chart, highlighting potential areas of reversal and target zones that could shape the market's direction in the coming months.


By examining different timeframes, I've discovered an interesting scenario unfolding on the weekly chart. The price action in 2024 appears to be forming a downward channel, reminiscent of a pattern we saw back in 2019. This analysis could provide valuable insights for anticipating future market movements and identifying trading opportunities.



In 2019, the crypto market experienced a significant advance in Q1 and Q2 before entering a declining channel. Many of us remember what happened next: Bitcoin started moving upwards, pulling the total market cap out of the channel. This movement coincided with the onset of the COVID-19 outbreak in China, leading to a failed rally. It wasn't until February 2020 that we witnessed signs of a market turning point, followed by a substantial crash during the global lockdown.




Fast forward to today, we're noticing similar patterns:

• $2.5 Trillion Level: This level mirrors the failed rally point of 2020 and serves as a critical resistance area. A break above could signal bullish momentum.
  
• $1.0 Trillion Level: This zone might act as a potential "surprise" support level in the event of unexpected market downturns.
  

Additionally, the 200-week moving average is acting as a significant support line. We might see the price spike below this average briefly during high volatility but expect it to recover above shortly after.



What are your thoughts on this setup? Do you think we're heading towards a failed rally similar to 2019, or are we on the brink of setting new all-time highs? Could external factors influence the market as they did back then? Share your insights and let's discuss!


Remember, the crypto market is highly unpredictable. Protecting your capital through proper risk management is crucial. A fundamental strategy is to risk no more than 1% of your capital per trade.

If you found this analysis helpful, please like and follow for more in-depth market insights. Stay tuned for future posts where we'll explore emerging trends and potential trading strategies. Happy trading!