Crypto Market Cap Retests Breakout, Poised for a Strong Rally

• Crypto market cap retests breakout, a key support zone, signaling a potential strong rally if buyers step in.
• Higher highs and higher lows confirm a sustained uptrend, reinforcing bullish momentum despite the recent pullback.
• A successful retest could push the market cap past its ATH, while failure may lead to deeper corrections.

The total market capitalization of the cryptocurrency market hit its all-time high (ATH) lately at $3.7 trillion, according to analyst Mags. The market subsequently corrected and is now testing the breakout level as support. This is standard for regular technical analysis expectations, which means a bullish retest before another higher move. The market trends are defined by higher highs and higher lows supporting an uptrend of the long-term trend.

Breakout and Market Trends

The total market cap broke out of a descending trendline from the 2021 peak. This trendline acted as a resistance level for over two years. Late in 2023, the market surpassed this barrier, leading to a surge in value. The breakout indicated a major shift in market dynamics, confirming bullish momentum.

After this breakout, the market cap increased. However, a correction followed, which brought the price back to the previously broken trendline. Here it is necessary to retest and observe if the bullish form continues or not. On failure of the trendline to continue, it may go further down.

Retest and Future Outlook

The pullback to the breakout level is a normal phase in an uptrend. This area, now acting as support, will confirm whether buyers are still in control. If the market cap rebounds from this zone, it could trigger another strong rally.

Technical indicators suggest that the market remains in an uptrend. The formation of higher lows and higher highs confirms sustained bullish sentiment. Additionally, the overall market structure shows historical trends of expansion, correction, and consolidation. This cycle has repeated over the years, further supporting the likelihood of another bullish leg.

Investors should monitor price action closely over the next few weeks. A successful retest and rebound could drive the total market cap past its previous ATH. On the other hand, failure to hold this support may lead to further corrections.