The altcoins are preparing to follow Bitcoin higher as their combined market capitalization breaks out. Could this be the start of the next stage of the bull market?
Altcoins stirring at last
The altcoins are stirring at last. So far in this crypto bull market, the main player and mover, without question, has been Bitcoin. Among the altcoins, very few have kept up with the number one cryptocurrency, and even less have outperformed it.
However, following the latest price surge from the $BTC price, various altcoins are breaking trend, and the market capitalization of the altcoins has also finally broken out.
Total3 channel breakout
Source: TradingView
Looking at the daily chart for Total3, which is the combined market cap of all altcoins, excluding $BTC and $ETH, it can be observed that the descending channel, within which the altcoin market cap has traversed, has finally broken to the upside.
As can be seen in the chart above, a candle wick came down to test the 0.618 fibonacci at $480 billion, and now Total3 has broken out. Given that the chart pattern is a bull flag, the measured move for this is $975 billion, which is more than a 50% rise from the current $600 billion market cap.
OTHERS chart about to reverse trend
Source: TradingView
The OTHERS chart is even more significant for the altcoins. This shows the combined market capitalization of all the altcoins, excluding the top 10 cryptocurrencies by market cap. Here, the altcoins have broken through the descending trend, and just need to make a higher high in order to reverse it.
The Fibonacci levels are targets above, and these accurately show some of the main horizontal resistances. The 0.382 Fibonacci is the first main level to break at $233 billion. Further targets are the 0.618 at $284 billion, and the 0.786 at $320 billion.
Still waiting on Bitcoin
Even with all this positive price action for the altcoins, they must still await the signal from the king of the cryptocurrencies – Bitcoin. Nevertheless, when $BTC does decide to break its own bull flag structure to the upside, the altcoins are likely to be in hot pursuit.
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.
Source: https://cryptodaily.co.uk/2024/09/altcoin-market-cap-breaks-out