Bitcoin (BTC) and altcoins are showing signs of warming up with potential trend reversal signals after a two-month downward trend. Many data points suggest that the cryptocurrency market may soon make a strong upward move.
Total Market Value Could Reach $2.72 Trillion
The total market value index provided by TradingView is currently at $2.19 trillion and is testing short-term uptrend support. The index has been trading below the 30-day Exponential Moving Average (30-EMA) since April 12 and is facing significant resistance at the $2.285 trillion level. Breaking above this level could push the market towards this year’s highest level of $2.72 trillion.
Despite the downward trend since March 14, increasing momentum indicates that this resistance level could be challenged very soon.
Many Technical and On-Chain Indicators Signal a Rise
On the other hand, the daily Relative Strength Index (RSI) is showing a bullish divergence from the downtrend, indicating a potential trend reversal. Social indicators analyzed by crypto analytics firm Santiment show that social volume and the dominance of the “buy the dip” sentiment have receded to the lowest levels of the year.
This temporary decline in investor interest typically signals that the market is either about to bottom out or has already bottomed. Santiment’s lead analyst, Brian Q, emphasized a similar conclusion regarding the crowd’s “buy the dip” sentiment, noting it could be a significant bullish signal.
Another bullish divergence is observed in the significant drop in Bitcoin’s social volume, while whales continue to hold record amounts of BTC. Technically, BTC is currently trading at $60,550 and is testing its fundamental support in a low range.
From a regulatory perspective, India reopening its doors to offshore cryptocurrency exchanges like Binance and Kucoin has boosted optimism in the market. Conversely, regulatory actions in the US continue to be strict enough to lead to the withdrawal of popular Bitcoin wallets from the country, keeping the cryptocurrency market under pressure.
