On February, 8th 2022, we gave an update on the Total Crypto Market Capitalization chart. At that point, the chart was showing that we were at the $2 trillion major resistance level, and also that the descending resistance line, from November 10th 2021, was also acting as resistance. We also pointed out at the time that with the “Stochastic Relative Strength Index (Stoch RSI) on the 4 hour and daily at very high levels, there should be a correction in the market at this point”.
On February 9th 2022, the total marketcap did attempt to break out of the descending resistance trend line, but went straight into resistance at $2 trillion, and got rejected there, resulting in what is referred to as a “fake out”, with the price dropping back under the trend line. Since then, the market has continued to trend downwards, but found support this morning on the 0.382 retracement Fibonacci level at $1.82 trillion. The 0.382 Fib line is measured between the low of $1.5 trillion, on January 24th, 2022, and the recent high at around $2 trillion. The Stoch RSI indicator on the 8hr & 12hr is also currently at the bottom, showing that we could have a short-term move back up.
However, the daily Stoch RSI indicator has not reset yet. So, this is possibly only a short-term move to the upside over the next day or two. Targets to the upside would be at the retracement 0.382 Fib level of $1.9T and 0.5 Fib level of $1.92T. The long-term resistance trend line from 10th, November 2021 will also still be acting at resistance at the $1.9T area.