Some red days have beset the altcoins over the previous week, but the price structure base appears to be holding. Is another $40 billion the amount of the next leg higher for alts?
The trend is still up
Fear continues to ebb and flow in the crypto markets as the price goes up and down. There is always some massive event that will crash the price down to unimaginable levels and then everyone will leave this space and forget about crypto.
Or, as is happening, the price will continue to move up in inexorable fashion. Yes, there are sell factors that come along now and then, and of course there are the normal ups and downs of any market, but crypto runs in cycles, and the bull market cycle is still playing out before our eyes.
Altcoins break out
Source: Coingecko/Trading View
The market cap of all cryptocurrencies, excluding $BTC and $ETH can be viewed on the Total 3 chart. The breakout has occurred, and the resistance at $523 billion looks to have now been flipped into support, meaning that the price might be ready to go higher. $580 billion, or a further $40 billion could be the next target.
A cautionary note
Source: Coingecko/Trading View
A similar chart to Total 3 is OTHERS.D. This is the dominance of all the altcoins excluding the top 10 cryptocurrencies, so it is a purer barometer of how the altcoins are performing.
It can be seen that the market cap here is within an upward channel. However, the price has now fallen out of the channel, and appears to have confirmed the downward break. Heavy resistance is also at this level.
Source: Coingecko/Trading View
Zooming further out on the weekly time frame it can be seen just how important this resistance is. Therefore there is certainly a cautionary warning here. If the price doesn’t break back above, further downside is possible.
This could be the measured move of the channel pattern, which would take the dominance back to 10% from the current 12%. Obviously that would be a negative move for altcoins, but it could also be looked at that this could then result in another run at that 12% dominance, and another opportunity to break it.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
