CRYPTO MARKET MOVEMENTS
The crypto market flipped the script, breaking out of a two-week correction and surging today.
With TOTALCAP smashing through key resistance and ALTCAP on the verge of a new all-time high, momentum is back on the bulls’ side.
Even more exciting, small-cap altcoins are stealing the spotlight, signaling the next explosive leg of this rally.
Crypto is up today mainly because it has broken out from a descending wedge pattern that existed since the Aug. 14 high.
After a two-week correction that ended on Sept. 1, the crypto market cap broke out from its descending wedge, signaling the end of its downward trend.
After the wedge breakout, the movement above $3.84 trillion is the second step in confirming the correction is over.
However, the main obstacle lies at $3.96 trillion, the 0.618 Fibonacci retracement resistance, and a horizontal resistance area.
Corrections often end at the 0.618 Fibonacci resistance, so if TOTALCAP manages to clear it, it will erase all doubt that the decline is over.
Adding to the importance of that level, the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are nearing their bearish divergence trend lines.
If the crypto market clears the $3.96 trillion level, the indicators will likely break their resistances, confirming that the correction is over.
