BeInCrypto - The Total Crypto Market Cap (TOTALCAP) and Bitcoin (BTC) continued their descent after rejections from the closest horizontal resistance area. Pepe (PEPE) reached a local top and has fallen by 60% since Friday.
In the news, Bittrex U.S. filed for Chapter 11 bankruptcy in a federal court in Delaware. FTX founder Sam Bankman-Fried challenged the indictment against him, requesting for all charges to be dropped.
Crypto Market Cap (TOTALCAP) Continues Descent
The TOTALCAP has fallen since April 14 and dropped below the $1.16 trillion area six days later. Afterward, it validated the area as resistance twice, on April 26 and May 6, respectively (red icons).
The movement is considered a bearish sign since the price broke down below an important level before validating it as resistance. This often leads to further decreases.
TOTALCAP Daily Chart. Source: Trading View
If this decrease occurs, the closest support area will be at $1.03 trillion. On the other hand, if the price regains momentum, it could make another attempt at breaking out above the $1.16 trillion resistance.
Bitcoin (BTC) Price Approaches Breakdown Level
The price of Bitcoin has been decreasing inside a bearish head and shoulders pattern since March 17. This pattern often results in breakdowns and sharp decreases.
The neckline of the pattern is at $27,500, right at the current price. If BTC breaks down below it, it could catalyze a massive drop toward the 0.5 Fib retracement support level at $23,200.
The target coincides with the length of the pattern projected to the breakdown point (white).
BTC/USDT Daily Chart. Source: Trading View
However, if the price of Bitcoin moves above the pattern’s right shoulder (red line), it will mean that the trend is still bullish. This can cause an increase to $42,000.
Pepe (PEPE) Finally Loses Steam
After a massive rally in April & May, the PEPE price finally lost its momentum and began to decrease on May 5. So far, the price has fallen by 60%.
Currently, PEPE trades inside the 0.618 Fib retracement support level at $0.0000019.
PEPE/USDT Six-Hour Chart. Source: Trading View
If the price breaks down, the next support will be at $0.0000014. However, if a bounce occurs, the PEPE price can increase to the next resistance at $0.0000029.
For BeInCrypto’s latest crypto market analysis, click here.