BeInCrypto - The Total Crypto Market Cap (TOTALCAP) and Bitcoin (BTC) are showing bearish signs that could lead to a downward movement.
In the news, Italy imposed a 26% tax on cryptocurrency profits, affecting both individual and business investors.
Crypto Market Cap (TOTALCAP) Retests Resistance
The TOTALCAP has fallen since April 14. It decreased below the $1.16 trillion horizontal area on April 20. After an unsuccessful bounce, it validated it as resistance four days later (red icon).
After breaking down from an area, these validations are considered bearish signs. Usually, they lead to another decrease.
TOTALCAP Daily Chart. Source: Trading View
If the decrease occurs, TOTALCAP could reach the $980 billion support area. However, if it manages to reclaim the $1.16 trillion area, an upward movement to $1.30 trillion could follow.
Bitcoin (BTC) Price Risks Breakdown
Since March 17th, the price of Bitcoin has followed a head and shoulders pattern, which is often considered bearish as it usually leads to a drop in prices. Currently, the neckline of this pattern sits at $27,500.
If the price of BTC falls below this level, it could drop to $23,200, which is the 0.5 Fib retracement support.
BTC/USDT Daily Chart. Source: Trading View
However, if the price goes up above the right shoulder of the pattern, it will go against the bearish trend and could potentially reach $42,000.
Stacks (STX) Price Attempts Breakout
The STX price has fallen under a descending resistance line since March 20. During this period, it made numerous breakout attempts.
Currently, the price is trying to move above the resistance line after creating a double bottom pattern (green icons). This is considered a bullish pattern that leads to upward movements most of the time.
STX/USDT Six-Hour Chart. Source: Trading View
If the STX price breaks out, the next resistance will be at $1.0. However, if it falls below the resistance line, it could decrease to $0.70 again.
For BeInCrypto’s latest crypto market analysis, click here.
For BeInCrypto’s latest crypto market analysis, click here
