Recent comments from SEC chairman Gary Gensler suggest that Bitcoin is the only crypto asset that is not a security. But for whatever reason, the TOTAL crypto market capitalization chart is giving a bullish signal, while the BTCUSD chart remains bearish.
Let’s take a closer look at this conflicting signal in the crypto market and what it means.
50/50: Breaking Bearish Or Bullish Signals
Last night, the February candlestick ended, providing new data for technical analysts to review. Technical indicators use data in their calculations, which are also updated when new monthly candles open on the chart.
After scanning the monthly price charts of Bitcoin, Ethereum, and dozens of other cryptocurrencies, there is a noticeable difference between the BTCUSD one month chart and the TOTAL crypto market capitalization chart at the same time.
The 50-month moving average discrepancies observed | BTCUSD on TradingView.com
Turning the 50-month moving average, Bitcoin closed the second month below the key resistance level. Meanwhile, the TOTAL crypto chart has spent the last two months above the same level. Price action held above could lead to a sustained recovery.
It’s not just the 50-month moving average that shows conflicting signals. BTCUSD’s monthly Ichimoku closed above the cloud, while the TOTAL crypto chart is not close to the cloud.
The Ichimoku cloud adds to the confusion | BTCUSD on TradingView.com
Bitcoin, Not Crypto: A Rising Tide Lifts All Boats
The reason for the discrepancy in the price chart is due to the strong performance of small cap altcoins. Many of these less liquid coins have already surpassed their 50-month moving averages, giving an edge to the TOTAL crypto chart.
The TOTAL crypto market capitalization chart is an aggregate created by TradingView, pulling price data from thousands of crypto asset trades on the platform. The number of coins collected is unknown, and may not reflect the accurate size of the rapidly growing market.
Bitcoin, on the other hand is just one asset, making chart signals more clear and actionable. The top cryptocurrency also has the ability to move the entire market, taking the wind out of any soaring altcoin rally or keeping it from the brink of extinction.
Watching the Bitcoin chart for signs of the obvious is a safer bet, but the TOTAL crypto market cap is a more price-sensitive aggregate that can give you an early taste of what’s to come. Will BTCUSD follow and strengthen the broader crypto recovery?
A tale of two graphs: #Bitcoin below the 50-month MA, $ TOTAL crypto above it. pic.twitter.com/bdGrkQ0axM
– Tony “The Bull” (@tonythebullBTC) March 2, 2023