TOTAL Crypto Market Cap - A Guide For Risk

The Market Capitilization of the cryptocurrency market has rightfully exploded in the past month, adding over 1/3rd of a Trillion dollars to the value of the market.

Market Cap. exploded through our previous resistance area and has now ventured into a Low-Volume Node on the VRVP Indicator. Low-Volume Node zones are prone to high volatility and explosive movements, due to the lack of previous demand or liquidity in that zone.

We have hit our final level of resistance, the high from a previous consolidation area created during the bear market of 2022.

Noting an interesting pattern from my momentum oscillator, ICYS Bot, which is a modification of our most popular indicator Mynx. Each time it has flashed an Overbought Sell Signal, market capitilization has continued to pump, but not much. It puts in a final leg up before a significant correction.

You can see this play out in October of 2022, January of 2023, and just now in October of 2023 as well. In each previous case, Market Cap has continued to put in a final upthrust before a correction.

I would tentatively anticipate and prepare for a correction here, and if we see Market Cap hold the 1.2 Trillion level (the previous resistance we just broke through), then our next target would be 1.6 Trillion, indicated by the target on the chart.

However, a loss of that level instead would be the first confirmation of a market-wide correction moving into early next year, which would be in line with our 4-Year Cycle Thesis and Market Projection.

Recommendations: Consider trimming or closing Long Positions if Market Cap rejects from current resistance, however long-term positional or swing-trades can be left open until we receive confirmation of whether Market Cap continues upwards from it's broken resistance, or falls back into the 2023 trading range.