Could the Altcoin market be in for a sneakily bullish bull run? The Altcoin Market Cap (TOTAL2) trades at a confluence of resistance levels, a breakout above which could lead to a sharp increase in the price of Altcoins. On the weekly time frame, TOTAL2 trades at a significant resistance area at $610 billion and is also sitting at a long-term descending resistance line which has been in place since the all-time high measure 518 days advantage. A successful breakout from this resistance would potentially begin a new Altcoin season.
The validity of the potentiall breaking out of the resistance has been further confirmed by the weekly RSI movement which registered a bullish divergence before putting itself in the green area above 50 and keeping itself in there. This is reminiscent of the similar situation in May 2020 in the past during which an increase of 2550% occurred leading to the market's all-time high. If the breakout fails and TOTAL2 decline instead, it could be heading towards the $450 billion support area.
It's worth noting that the Bitcoin Dominace (BTCD) has been progressing simultaneously but to a somewhat different pattern than TOTAL2. BTCD is on its way to breaking out from the 48% resistance area, a change that could see the Dominace rate climb up to 58%. However the weekly RSI indicator is currently in the overbought zone, a situation which hasn't turned out too well for BTCD previously.
The situation can be best described as complicated and could change quickly as BTCD, TOTAL2 and BTC have interlinked effects. As an example during the $20,000 dip in May 2021, BTCD witnessed a rapid increase while TOTAL2 simultaneously plummeted as altcoins took a greater hit than BTC. Now all 3 entities have been rising simultaneously with a healthy sign that investors haven't gone all-in on BTC.
When comparing TOTAL2 and BTC, it can be observed that during periods of large upward movements followed by a period of consolidation is usually when TOTAL2 begins to outperform BTC. It was this situation in May 2021 when BTC created a lower high after a few weeks of reaching its record value of $30,000. At this point, investor attention shifted from BTC and on to Altcoins.
Thus, a period of consolidation in the BTC price could be conditions primed for another Altcoin season. Until this happens however, investors should wait and remain attentive to the market's behavior.
Selena Ramirez
- 2023-04-12
Is the Altcoin Market Heading for a Bullish Run?
Could the Altcoin Market be in for a Sneakily Bullish Bull Run? Learn about the confluence of resistances, RSI movement and what an increase in Bitcoin Dominance (BTCD) could mean for the Altcoin scene in this article.
