The total cryptocurrency market capitalization reached a historic high of $1 trillion on Jan 14, after breaking above the $900 billion mark on Jan 12. This marks a stunning comeback for the digital asset class, with Bitcoin price hovering around $21,000 for the first time since early November.
The surge in the crypto market cap has created an environment of optimism and enthusiasm among traders. The bullish sentiment is further reinforced by Ethereum’s recent high of over $1,450, followed by altcoins such as Compound COMP recording 33.97% gains and Solana gaining over 33% in the last 24 hours.
The total market cap stands at $986.00 billion, with Bitcoin’s market share at 39.78%. Ethereum is in second place with a 19.21% market share, followed by XRP (2.04%), Tether (6.85%), and Cardano (1.25%).
Bitcoin’s (BTC) price is attempting to move above the 0.618 Fib retracement resistance level. Bitcoin is trading at $20,426.08, which is 8.19% higher on the day, and 20.80% higher than last week’s close.
The price of Bitcoin has moved above the major resistance level at $21,000, and it looks like the bulls are in control. The Stochastic RSI indicator is currently showing bullish momentum, suggesting that the uptrend may continue.
The market looks to be in an uptrend with strong buying pressure. If Bitcoin can break above the $21,000 resistance level and move toward the $22,000 mark, we could see further gains for the crypto asset. However, a bearish scenario has been witnessed over the last hour as the momentum has slowed.
Ethereum (ETH) is leading the crypto asset class with an impressive 7.59% surge in the last 24 hours. The digital asset is currently trading at $1,519.77 and is up 20.11% over the last week.
Ethereum is trading in an ascending channel, and it looks like the bulls are in control. If the asset can break above the upper trendline of the channel, we could see further gains for ETH.
The altcoin market also saw impressive gains in the past 24 hours with Compound COMP leading with a 33.97% surge, followed by Solana gaining 33.38%,Binance coin gaining 5.97%, and MATIC 7.15%. The losers of the day are Terra Classic LUNA, trading at $0.000168 and is down by 4.11% in the last 24 hours.
Ever since Nov. 21, the crypto market cap has seen an upward trajectory and achieved a higher low on Dec. 19 which further propelled its growth before ultimately breaking out of the $824 billion resistance area on Jan 11th – now serving as support going forward.
It is essential that this area of the crypto market reclaims itself since back on Nov. 10 it fell below its original level. If successful, this same area should be able to provide support once again in the near future.
With the current upward trend of growth, the next resistance is estimated at $916 billion based on a 0.618 Fib retracement resistance level. As evidenced by the continuing rise in daily RSI readings without any bearish divergence signals, it seems that this increase will continue to move upwards.
Alternatively, if the daily close is below $900 billion, there is a risk of reversal and further downward movement.
Bitcoin and Ethereum‘s price movement in the next few hours and days will be crucial for the overall market trend. If these two giants are able to maintain their current trajectory, we can expect further gains in the crypto market cap and a positive outlook going forward.