BeInCrypto - The Total Crypto Market Cap (TOTALCAP) and Bitcoin (BTC) made unsuccessful bounce attempts on May 10. Pepe (PEPE) has reached an important Fib support level.
In the news, the New York state proposed new legislation that will authorize stablecoins to be used as bail payment.
Crypto Market Cap (TOTALCAP) Bounces but Fails to Reverse
The TOTALCAP has decreased since April 14, dropping below the $1.16 trillion area after six days. Then, it validated the area as resistance twice, on April 26 and May 6, respectively (red icons).
The price action is considered bearish. Such breakdowns are followed by validations of the area as resistance usually leads to more pronounced downward movements.
While TOTALCAP bounced on May 10, it created long wicks on both sides, a sign of an undetermined trend.
TOTALCAP Daily Chart. Source: Trading View
If another drop occurs, the closest support area will be at $1.03 trillion. On the other hand, if the price regains momentum, it could make another attempt at reaching the $1.16 trillion resistance.
Bitcoin (BTC) Price Nearly Breaks Down
Since March 17, the price of Bitcoin has been following a bearish head and shoulders pattern, which frequently leads to breakdowns.
The current price of BTC is sitting at the neckline of this pattern, which is at $27,500. If Bitcoin falls below this level, it could trigger a massive drop toward the support level at $23,200, which corresponds to the 0.5 Fib retracement level.
This target aligns with the length of the pattern extended to the breakdown point (represented by the white line).
While BTC attempted a bounce on April 10, it created long wicks on each side, failing to confirm the trend’s direction.
BTC/USDT Daily Chart. Source: Trading View
If the price of Bitcoin moves above the pattern’s right shoulder (red line), it will mean that the trend is still bullish. This can cause an increase to $42,000.
On the other hand, a close below the neckline will confirm that the trend is still bearish.
Pepe (PEPE) Reaches Important Support
After a massive rally in April & May, the PEPE price finally reached a local top on May 5. It has moved downwards since, culminating with a minimum price of $0.0000015 on May 8, a decrease of 60% from the high.
Currently, PEPE trades inside the 0.618 Fib retracement support level at $0.0000019. Whether it breaks down or bounces will determine the trend’s direction.
PEPE/USDT Two-Hour Chart. Source: Trading View
If the price breaks down, the next support will be at $0.0000014. However, if a bounce occurs, the PEPE price can increase to the next resistance at $0.0000029.
For BeInCrypto’s latest crypto market analysis, click here.
For BeInCrypto’s latest crypto market analysis, click here
