Bullish Movement In Crypto Markets As Bitcoin And Solana Overcome Resistance

While the values of Bitcoin (BTC) and Solana (SOL) both emerged from declining resistance lines, the Total Crypto Market Cap (TOTALCAP) broke through a horizontal resistance zone.

On January 3, Sam Bankman-Fried entered a not-guilty plea for defrauding investors in his now-defunct cryptocurrency exchange FTX. His request that the identities of the two people who signed his bond be kept secret was granted.

Related news: Bitcoin Twitter is planning to purchase the FTX IP and relaunch the exchange with a new name.

Between December 18 and December 30, under the $752 billion support range, the cryptocurrency market cap shaped a double bottom. The double bottom is a bullish pattern, indicating that it frequently results in upward advances.

Additionally, the pattern was accompanied by the bullish split in the six-hour RSI (green line), a further indicator of a bullish turnaround.

Interestingly, after the second bottom, the market valuation of cryptocurrencies started to rise. The crypto market value broke out of the $770 billion resistance level on January 3, and the $810 billion mark is the next barrier.

The most likely outcome is an increase toward $810 billion as long as TOTALCAP does not close under $770 billion.

It is anticipated that the price would fall toward $750 billion if the close fell below $770 billion.

BTC Attempts to Breakout

Since December 16, the price of Bitcoin has fallen beneath a declining resistance line. The most recent rejection was on December 27 due to the bar. But on January 3, the BTC price finally managed to break out.

The nearest resistance levels, produced by the 0.5-0.618 Fib retrace resistance levels, would be between $17,325 and $17,575 if the upward advance continues.

A drop below the declining resistance line could lead to a decline below the $16,590 support area and possibly a drop below $16,500.

Since November 9, the SOL price has plummeted beneath a declining resistance line. December 29 saw a low of $8 due to the decline. Soon after, the Solana price rose upward and formed a lengthy lower wick (green icon). On January 3, the SOL price deviated from the trend line. The cost of SOL has surged by 75% since its lows on December 29.

SOL is edging closer to the $14.80 barrier level. The upward momentum can speed up if there is a breakout above it.

Related Reading | NFT Investors Find Hope With Unsellable, But Skepticism Persists

On the other hand, if the test is unsuccessful, the lowering resistance line may be retested.

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