Even though no one knows why, the cryptocurrency market is down today. The resistance line of a corrective pattern did not agree with the price of Bitcoin (BTC). Since yesterday, Curve DAO Token (CRV) and Dogecoin (DOGE) have lost the most.
The most interesting news about the cryptocurrency market on December 1 was a report from the Wall Street Journal that said rising Tether loans pose a risk to the industry. But Tether responded by saying that their loans are well-secured and don’t pose any risk to the cryptocurrency market.
On Dec. 1, the total value of the crypto market (TOTALCAP) went down by 1.5%. The area of long-term resistance at $830 billion was very close to where the rejection happened. The area was used as support from June to July (green icons), but now it is being used as resistance. Before the trend can be called bullish, the crypto market cap must get back to where it was.
A double bottom pattern and bullish divergence in the RSI came before the current rise (green line). But the latter hasn’t moved above 50 yet, which would show that the trend is up.
So, for the trend to be bullish, the cryptocurrency market cap needs to get back up to $830 billion and the RSI needs to move above 50.
The short-term two-hour technical analysis gives a prediction that the price of Bitcoin will go down. Since Nov. 21, the digital asset has been going up in a way that is corrective. It went down over the past 24 hours after the resistance line of the channel stopped it (red icon).
Also, the price of Bitcoin dropped below the resistance area of $17,050. Lastly, the movement inside the channel looks like an A-B-C corrective structure, in which waves A and C are equal in size.
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