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Poor altcoin holders have probably sold up, or they are writing off their altcoins, putting the whole thing down to experience. As things stand, the altcoin market cap is at the cliff edge. Will the current small recovery continue, or will that final jump over the brink take place?
Total3 breaks out
Source: TradingView
Is this the first green shoots of the recovery, or yet another fake-out that will drive altcoin investors into further misery? On the Total3 chart (combined market capitalisation of all cryptocurrencies excluding $BTC and $ETH) a breakout has just taken place. $900 billion is the next short-term target at the 0.5 Fibonacci, then $935 billion at the 0.618 Fibonacci, and finally a breakout of the descending trendline and a retake of the $1billion resistance.
Institutional interest alive and well in $ETH
Source: TradingView
$ETH isn’t part of the Total3 chart, but it is very important, considering its huge market cap compared with the rest of the altcoins. Just look at the recent dip down to the major horizontal resistance at $2,150, which is just above the deepest of the Fibonacci levels at 0.786.
The wick left behind from the huge buying that came into $ETH as it perfectly hit support, was probably testament to big institutional interest in the number two cryptocurrency by market cap. It would be no surprise to see the $ETH price spur onwards from here and break this local downtrend.
Bitcoin Dominance finally reached its pivot point?
Source: TradingView
While Bitcoin Dominance has remained very high, the recent spike to the upside was forced all the way back down and back under the horizontal resistance at 61.5%. Analysts (including this author) keep calling a top on Bitcoin Dominance, but this time, as long as no more black swans pop up, the pivot point could be here, and a proper breakdown of the ascending channel can finally take place.
As for most other major pivots, they take place when the storm is at its darkest and strongest. Some say that altcoins will not do much, even if Bitcoin gets above its last all-time high. That said, the old adage of ‘a rising tide lifts all boats’ will almost certainly be the case here.
Some altcoins will outperform Bitcoin
Not all altcoins will outperform Bitcoin, but some will. The job of the retail investor is to make sure they are positioned in at least one or two of those that will outperform. It’s not over for altcoins. There is still some way to go in this bull cycle.
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.
