Total 2 Marketcap - Is this cycle repeating the last two cycles?
In this analysis, we are discussing the possible repetition of the last two cycles by the total 2 (Crypto Total Market Cap Excluding BTC) on the monthly timeframe. By comparing this cycle in conjunction with the RSI and the Stochastic RSI with the previous two cycles we could make a statement that the market might follow the same bearish signals.
What did we see in the previous two cycles with regard to the price action and RSI
In both bullmarket cycles we saw the total 2 making highers highs and higher lows. In both instances the RSI made a lower high while the price action made a higher how consulting in a bearish divergence on the monthly timeframe.
What did we see in the previous two cycles with regard to the price action and Stochastic RSI
In the last two bullmarkets we saw the Stochastic RSI (momentum indicator) rising to levels above 80 on the indicator, overbought territory. This means that the momentum to the upside in the Crypto market is immense. However, in both instances the Stochastic RSI was in overbought territory during the first top. After the first top the momentum weakened and thus resulting in bearish momentum below level 80.
However, the momentum weakening, both cycles made a new higher high. By making a new higher high the Stochastic RSI made a bullish cross around the 40/50 level. Nevertheless, after making a new higher high and a new Stochastic RSI cross up the price fell, resulting in another bearish Stochastic RSI cross down.
What we can conclude is that in both previous cycles the Stochastic RSI made a cross down below the 80 level at the first top and made a second cross down around the 40/50 level during the final top.
How does the previous cycles relate to this current cycle
In this current bullmarket we see the Total 2 Marketcap rising and making higher highs and higher lows. However, this cycle looks alike the past two cycles in comparison with the price action, RSI and Stochastic RSI.
This Cycle the price action made higher highs and the RSI made a lower high. Thus, resulting in a bearish divergence.
Also, in this cycle the first peak occurred with the Stochastic RSI above the 80 level and breaking down at a later moment, resulting in bearish momentum. However, this cycle did the same as the previous two. With the bearish momentum the Total 2 Marketcap made a new high with a second Stochastic RSI cross down at the 40/50 level.
Conclusion
This cycle looks a lot like the past two cycles in comparison with the RSI and Stochastic and thus suggesting that there is a possibility that we go in to a new bearmarket and repeat the last two cycles. The current evidence shows that the market might follow the similar path again.
What is a bearish divergence
A bearish divergence signify potential downtrends when prices rally to a new high while the indicator (RSI) refuses to reach a new high and thus making a lower high.
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What did we see in the previous two cycles with regard to the price action and RSI
In both bullmarket cycles we saw the total 2 making highers highs and higher lows. In both instances the RSI made a lower high while the price action made a higher how consulting in a bearish divergence on the monthly timeframe.
What did we see in the previous two cycles with regard to the price action and Stochastic RSI
In the last two bullmarkets we saw the Stochastic RSI (momentum indicator) rising to levels above 80 on the indicator, overbought territory. This means that the momentum to the upside in the Crypto market is immense. However, in both instances the Stochastic RSI was in overbought territory during the first top. After the first top the momentum weakened and thus resulting in bearish momentum below level 80.
However, the momentum weakening, both cycles made a new higher high. By making a new higher high the Stochastic RSI made a bullish cross around the 40/50 level. Nevertheless, after making a new higher high and a new Stochastic RSI cross up the price fell, resulting in another bearish Stochastic RSI cross down.
What we can conclude is that in both previous cycles the Stochastic RSI made a cross down below the 80 level at the first top and made a second cross down around the 40/50 level during the final top.
How does the previous cycles relate to this current cycle
In this current bullmarket we see the Total 2 Marketcap rising and making higher highs and higher lows. However, this cycle looks alike the past two cycles in comparison with the price action, RSI and Stochastic RSI.
This Cycle the price action made higher highs and the RSI made a lower high. Thus, resulting in a bearish divergence.
Also, in this cycle the first peak occurred with the Stochastic RSI above the 80 level and breaking down at a later moment, resulting in bearish momentum. However, this cycle did the same as the previous two. With the bearish momentum the Total 2 Marketcap made a new high with a second Stochastic RSI cross down at the 40/50 level.
Conclusion
This cycle looks a lot like the past two cycles in comparison with the RSI and Stochastic and thus suggesting that there is a possibility that we go in to a new bearmarket and repeat the last two cycles. The current evidence shows that the market might follow the similar path again.
What is a bearish divergence
A bearish divergence signify potential downtrends when prices rally to a new high while the indicator (RSI) refuses to reach a new high and thus making a lower high.
Thanks for your support!
Drop a like and leave a comment to have a conversation about this topic. Make sure to follow me so you don’t miss out on the next analysis.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.