The total cryptocurrency market capitalization faces resistance at $2.29 trillion, with key support at $2.24 trillion and a risk of falling to $2.11 trillion.
Bitcoin is trading at $67,458 with resistance at $68,250; if it fails to break through this resistance, it could fall towards $65,292.
FTT surged 11.8% to $2.05 but needs to break $2.20 to rise further; failure could result in a drop to around $1.90.
The total cryptocurrency market cap (TOTAL) and Bitcoin (BTC) continued their bullish momentum this week. Altcoins followed suit, with FTX’s native token FTT becoming the best performing coin of the day.
Cryptocurrency Market Faces Challenges
After more than three weeks of consolidation, the total cryptocurrency market capitalization has reclaimed the $2.24 trillion support level. Currently, the $2.29 trillion resistance level is a key hurdle for further upward momentum.
If the market cap exceeds $2.29 trillion, it could reach $2.30 trillion, a multi-month high. The last time the market cap exceeded this level was two and a half months ago. This would mark a renewed strength for the entire cryptocurrency industry.
However, if it fails to break through $2.29 trillion, the total market capitalization could fall below $2.24 trillion, or even as low as $2.11 trillion. Such a drop would raise concerns about overall market sentiment.
Bitcoin bulls enjoy
The price of Bitcoin is currently trading at $67,458, marking its highest level in nearly three months. The last time BTC reached this level was in late July, reflecting renewed investor optimism. This upward momentum suggests that Bitcoin is regaining strength after a period of consolidation.
Bitcoin’s next major resistance level is at $68,248, a level that has not been breached since June. To break through this resistance level, BTC will need strong bullish momentum. A successful break above this resistance level could spark further gains, pushing Bitcoin higher and exciting traders who are watching key price levels.
On the other hand, if Bitcoin fails to break out of $68,248, its price could drop to $65,292. Losing this support would set the stage for a wider correction that could take Bitcoin down to $61,868. Such a scenario would cause concern among short-term traders.
Length of the reaccumulation phase
Currently, BTC is in an extended re-accumulation phase, which lasted for more than 185 days, longer than the previous cycle. In 2020, 160 days after the halving, it broke out of the parabolic phase.
To trigger the next parabolic phase, Bitcoin needs to break above the near-term resistance established over the past few months. Recent price action shows continued volatility between established range lows and highs, suggesting a breakout could be imminent. A weekly close above current resistance would be an important signal for a potential rally.
This re-accumulation phase is a great opportunity to accumulate before the market turns parabolic uptrend. Historically, prices have risen sharply, making this phase crucial for investors.
FTT seeks stability
The price of FTT has surged by 11.8% in the past 24 hours and is trading at $2.05. The altcoin is steadily climbing higher with the goal of surpassing the $2.20 mark. This upward trend reflects increased investor interest and could boost FTT’s short-term prospects.
If FTT manages to close above $2.20, it could regain recent losses with a price target of $2.54. A break above this barrier will enhance the bullish momentum and mark the entry of a significant recovery phase for the altcoin.
However, if FTT fails to break above the $2.20 mark, it could invalidate the current bullish trend. In such a case, the price could drop to $1.90 or lower. Such a decline could indicate weakening market sentiment, which would be negative for FTT’s prospects.
Looking ahead
While previous cycles saw large rallies following halvings, managing expectations is critical. The returns we may see in this cycle will likely be lower than in the past. A realistic outlook suggests prices could move toward the $100,000 range, but investors should remain cautious, he said.
