Cryptocurrency markets have seen a short-term bull run over the past 30 days. Bitcoin (BTC) took the lead as investors’ greed started taking over and most digital assets saw massive capital inflows.
According to TradingView’s leading index, the total value of the cryptocap (CRYPTOCAP TOTAL) increased by $365 billion in just one month. At the time of writing, the crypto market cap jumped from $1.024 trillion to $1.392 billion between October 12 and November 11.
However, the Relative Strength Index (RSI) on the daily chart is currently at 88.29. This state has been sustained since October, when the RSI was at 22. Additionally, the total capitalization is $155 billion away from the 30-day exponential-moving average (EMA).
These indicators suggest that the crypto market could experience a natural correction at any time. Traders must keep an eye out for important support areas in the market capitalization index. As long as these support areas are maintained, the bull market will continue. If the capitalization breaks away from the support, it would indicate a reversal in trend.
On the other hand, the psychological resistance to the total market capitalization of $1,50 trillion for all indexed crypto currencies could be a magnet for the current uptrend. Crypto Tony, a cryptocurrency expert on X, believes that altcoins should cross this line in order to keep the upward bias in global market cap.
Ethereum (ETH) holds a capitalization of $405 billion at the time of writing. A rejection of this line would strengthen the resistance and favor the bearish scenario.
It is important to remember that investing in cryptocurrency is speculative and your capital is at risk when doing so.
