Let's make it simple: the total market cap is still in a big range since May 2022.
The range's low was marked in December 2022. The range high has been confirmed recently in April 2023, almost a year after the whole market entered in this darvas box (May 2022).
This week, the mid-range (Fib 0.5) was revisited. This level is also where the MA200D is found. Consequently, it's normal that whole market has been bouncing strong from there.
What will be the next to happen?
In charts, I put three scenarios which I consider the most probable to happen. Among them, I have a preference for scenario B, in short-term: The whole market cap to decrease to Fib 0.618. For a further projection, I thinkt that it's still soon to say.
The reasons for my choice (B) are:
- From a technical analysis point of view, the total marketcap faces strong resistances: EMA 50D and the trendline starting from April 2023. Moreover, the volume indicator CMF lost its trendline.
- On fundamental aspects, the war between SEC and Binance is just at the beginning. Another one is that it will take time (months) for SEC to reply to Blackrock's application on bitcoin ETF.
I'd appreciate if you can share your view on the crypto market and your comment o.n this analysis.
Have a good new week!
