Crypto indices hinting a possible Alt-Season
It has certainly been an interesting few days! Volume is back, we’re hitting over $90B/24H according to CMC which is a good sign for an upside continuation on BTC and reversal for Alts. The reason we’re analyzing the Altcoins’ MCap first is because it is more bullish and considering the level the Bitcoin Dominance is at (approx. 70%) we can say, from a fundamental perspective, that it will reverse in the near future.
We expected $48B to be the level of support to be hit but it was front ran, which happens often and we must adapt to that. The same occurred when everyone was expecting BTC to bottom at $2,950-$3,000, the level was front ran back then.
We’ve broken out of the falling wedge successfully which targets the dashed-line near $103B AND price action just crossed 63B with a daily candle and has retested it for support.
As long as this level holds (and we cannot stress this enough), the next target will be 83B followed by 103B. An incredible 60% increase from today’s prices! Whether the [$110B-$120B] grey block will be rejected or crossed remains to be seen and no one can anticipate the latter with a decent level of certainty from now.
Now, taking a look at the Total MCap, which is largely influenced by Bitcoin, we see a different image being drawn. PA found support near $170B (light grey area) and is now finding difficulty crossing $216B (i.e. at resistance). Considering the amount of volume being traded as well as the market sentiment that turned to “Neutral” a few days ago which has been in “Fear” & “Extreme Fear” since late summer 2019, we could say that 216B will ultimately be crossed.
But pairing this image with the bullish image of Alts, the bearish image of the Bitcoin Dominance and the plausible double-bottom (with a bullish divergence) on ETH/BTC. We could start anticipating Altcoins to outperform Bitcoin in the near future.
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