With some of the major altcoins suffering as much as a 50% correction, and more, it could be time to start making some speculative entries into the market.
Total2 making higher lows
Source: TradingView
The Total2 chart tracks the combined market capitalisation of all cryptocurrencies, excluding $BTC. It can be seen how the market cap fell through the horizontal levels that lined up with the top of the bull flag, which was a really bearish event.
However, a series of higher lows are being made, even if at the same time a series of lower highs are being recorded. The local downtrend is evident, and in order to start breaking this, a higher high beyond $1.29 trillion will need to be achieved.
A top forming for Bitcoin dominance?
Source: TradingView
The Bitcoin Dominance chart (BTC.D) displays the inability of dominance to hold above the 61.6% resistance. A topping pattern could be playing out, and it might be expected that dominance falls to the bottom of the channel at around 59%. Also, the Stochastic RSI at the bottom of the chart is showing a potential crossover of the indicator lines. If the crossover does take place, this will push dominance down, perhaps even as far as horizontal support at 57%.
A bounce coming for $ETH
Source: TradingView
Among all the altcoins, as far as size of market cap goes, there is nothing the size of Ethereum. Therefore, for an altcoin rally, $ETH must also go up.
The weekly chart shows how $ETH is managing to stay above the major horizontal support band, which stretches from $2,150 to $2,350. This also lines up with the bull market trendline support. If this structure fails, there is a much higher likelihood of an entry into a bear market.
That said, it’s holding. Also, at the bottom of the chart, the Stochastic RSI is bottoming. A bounce is probably forthcoming. How soon this might be, and its extent, still remain to be seen.
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.
