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Crypto Market Faces Key Decision Point as Altcoins Test Major Support
Crypto market cap retests 2021 ATH & trendline; holding this level could confirm bullish continuation.
A successful retest of resistance-turned-support may push prices to new highs, while failure risks downside movement.
Candlestick & linear charts confirm a key market decision point—bounce or breakdown will shape future trends.
The total cryptocurrency market capitalization is testing a critical confluence zone. According to market analyst Moustache, the total market cap is now revisiting its all-time high(ATH) from 2021. Besides, it sits on a trendline that has been intact for 1.5 years. This pivotal moment determines whether the market continues its uptrend or faces a downside risk.
Source: Moustache
Market Structure and Key Resistance Levels
The cryptocurrency market peaked in 2021, reaching nearly 936.2 billion USD before declining sharply. The prolonged bearish phase continued into 2022, causing an extended period of lower prices. However, the market stabilized in 2023 and began forming a solid base for a potential recovery.
Moreover, in 2024, the market saw a breakout above a crucial resistance level. This move signaled a shift in momentum, pushing prices higher. Following this breakout, a retest of the previous resistance confirmed its transformation into a strong support level. If this support holds, the market could resume its bullish trend.
Technical Indicators Signal Critical Market Phase
A closer look at both candlestick and linear charts highlights the importance of this level. The candlestick chart showcases price volatility, whereas the linear chart smooths out the trends. Both indicate that the previous resistance-turned-support is a decisive level for future price movements.
Source: X
Additionally, the breakout zone, marked in red, represents a key turning point in market dynamics. The price initially surpassed resistance, later revisiting the level to establish it as a support base. This pattern typically signifies strong bullish continuation.
If the market holds this confluence zone, it could sustain its upward momentum. A bounce from this support could propel prices toward new highs. However, a failure to maintain this level may lead to a breakdown, causing further losses.
The post Crypto Market Faces Key Decision Point as Altcoins Test Major Support appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.