The altcoin market looks primed to run as key levels continue to be held. That said, the altcoins need the wink from bitcoin, and therefore, what bitcoin does over the rest of this week could be crucial for the rest of the cryptocurrency market.
Crypto is one of the only assets going up
Altcoins are still very much in an uptrend. In an economic environment where among all assets, only precious metals, technology and crypto is climbing, it’s good to be in the altcoins.
Bitcoin dominance needs to be watched
That said, if bitcoin is very volatile, the altcoins are very much more so, and large spikes to the upside as well as the downside are commonplace. Having the fortitude to resist all the noise is therefore a very important quality to have for investors.
Source: Coingecko/Trading View
Nevertheless, how bitcoin fares is also very important for the alts. Currently, bitcoin dominance is continuing to make lower highs, while at the same time making higher lows. This does signify the formation of a bullish ascending triangle, so altcoin traders will need to continue watching this.
Altcoins market cap continues to rise
Source: Coingecko/Trading View
Looking at the Total 3 chart (total market capitalization of all crypto currencies, excluding $BTC and $ETH) the price looks to be funnelling up again towards the $775 billion resistance. This would also lead to the formation of a bullish ascending triangle.
One thing to note is that not all altcoins will necessarily make big-time gains. That said, even if bitcoin dominance remains generally in favour of bitcoin, some of the more fundamentally sound altcoins can still potentially attract enough liquidity to run. After all, this is a crypto bull market, as well as being a bitcoin bull market.
Bittensor (TAO) is on the up
Source: Coingecko/Trading View
An altcoin that is currently on the up is Bittensor (TAO). $TAO is up 16.8% on the day so far, and is heading toward the top of a triangle. Breaking through could lead to price discovery again. The yellow support lines can catch the price if it comes down.
Pendle (PENDLE) in parabolic uptrend
Source: Coingecko/Trading View
Another altcoin that isn’t waiting on bitcoin is Pendle (PENDLE). Currently in a parabolic uptrend, it is to be wondered just how far the $PENDLE price can go. Presently paused at the 3.618 fibonacci extension, the 4.618 is at $8.26. The price may well hit this level.
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.
