Crypto Marketcap Analysis
The total cryptocurrency market cap will be studied using TradingViews aggregate market cap data. The analysis will be done over a Monthly, Weekly and Daily chart review.
Total Market Cap with Bitcoin, Monthly Chart
The monthly Ichimoku is limited to the data that TradingView has for their aggregate market cap charts (data starts in March of 2014). As a result, the only cloud that we see on the monthly chart starts well into the future, starting in August of 2020. However, that does not mean we can’t glean any strong info. The Kijun-Sen is above at the 4xxx value area. The market cap tested that level back in June, the first test of that level in 13 months. But price has found strong support against the monthly Tenkan-Sen and it there is nothing on the monthly chart that suggests this would change.
Total Market Cap with Bitcoin, Weekly Chart
The weekly chart for the entire cryptocurrency market cap shows a very interesting condition. First, we see a great example of not only how strong the Senkou Span B line is, but we also see how the Lagging Span responds to resistance just like price. Current price is up against the Senkou Span B and has been for the past 10 weeks. The Lagging Span has only been testing the bottom of the Kumo, Senkou Span A, for the past 4 weeks. But there is some strong evidence that suggests we could break out. The fact that we have been trading against the weekly Senkou Span B shows a clear picture that traders and investors want to move higher. This fact is supported by another fact: Price has not closed below the weekly Kijun-Sen since it crossed above it back in April of 2019. But we should be cautious, the current weekly candle is right on top of the weekly Kijun-Sen and with the Chikou Span being rejected of the bottom of the Kumo, this could spell some major downside movement.
Total Market Cap with Bitcoin, Daily Chart
From a daily perspective, the consolidation in the total market cap seems a little dicey. The current daily Chikou Span is now below the price action. Given that price and the Chikou Span are both below the daily cloud, when we throw in the Chikou Span below the candlesticks we have a prime setup for strong bearish continuation. Even though this setup is inherently (and strongly) bearish, there are some considerations we need to look at. Firstly, Bitcoin remains in a strong and persistent bullish pennant with a range that continues to contract and trend lines that continue to be respected. And given that Bitcoin represents nearly 70% of the entire market cap, any slight drive higher would move the market cap as well. We also need to be aware of the fact that the altcoin market has been in a bear market for almost two straighter years – the longest in cryptocurrency history. Many of the top 40 cryptocurrencies have found new all-time lows and are now consolidating against those lows, indicating a change in the overall trend may occur at any moment.