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As the crypto market cap (TOTALCAP) breaks out of a declining resistance line, the price of Bitcoin (BTC) still seems to be struggling to do so. Yesterday evening, Grayscale Investments announced that it has made a second application for an Ethereum exchange-traded fund (ETF). This fund is based on Ethereum futures contracts.
TOTALCAP Breaks Above Resistance Line
Since July 13, TOTALCAP has been trading below a declining resistance line. The downward movement reached its lowest point at $978 billion on September 11. Afterwards, TOTALCAP started moving upwards and reached the resistance line on September 18. However, instead of a rise, it formed a long wick (red symbol) indicating a significant drop. Nevertheless, the price moved back above the line the next day.
If the price continues to rise, it could trigger a 7% movement and reach the $1.13 trillion resistance area. However, if TOTALCAP falls below the resistance line, a 6% drop to the $1 trillion support area could potentially occur in the future.
Bitcoin (BTC) Price Update
BTC price has been trading below a declining resistance line since July 13. The decline ended at a low price level of $24,901 on September 11. The price then showed a sharp increase and reached $27,483 on September 19.
However, Bitcoin failed to break out of the declining resistance line. Instead, it formed a long upper wick (red symbol), indicating a slight drop. A breakout from the line could indicate that the correction is complete to investors.
In case of a breakout, the Bitcoin price could increase by 8% and reach the resistance area at $29,200. However, if the price is rejected from this area, a 11% drop to the 0.618 Fib retracement support level at $24,250 could reveal the future price outlook.
The news of Grayscale ETF application made in yesterday evening seems to have created a strong outlook for the market before the FOMC meeting. The decision on the Ethereum futures application will be a matter of curiosity once again. After the announcement of the decision later this evening, the market direction can be seen more clearly.
