The whole crypto space is relatively dormant right now. Bitcoin is still hanging on to the low of its bull flag, while the altcoins are generally tracking sideways and downwards. However, once the market does turn again, the altcoins could be set for much greater upside.
Bitcoin dominance in bear flag
Source: TradingView
Bitcoin dominance is a good place to start for sizing up the chances for altcoins. In a decline since hitting 66%, Bitcoin dominance has recently formed a bear flag. While the price is making higher highs and higher lows, this is a typical bear flag setup, therefore a breakdown is likely, and given the overhead resistance, it might be sooner rather than later.
A target for the breakdown is the horizontal support at 60%, although if the measured move of the bear flag plays out, the target could be as low as 57%.
Bitcoin dominance to 57%?
Source: TradingView
Zooming out into the weekly time frame for Bitcoin dominance a trendline can be drawn for the long uptrend since 2023. This also acts as a canary in the coalmine, because if this is breached, the way would be clear for that 57% dominance.
Total3 bull flag nears breakout
Source: TradingView
Total3 is the combined market cap of all the cryptocurrencies except $BTC and $ETH, and so is a very good barometer of how the altcoins are doing.
The short term chart above shows a bull flag, which is much more likely to exit from the top than from the bottom. A decent horizontal support band is not far under the price so a bull flag breakout could happen soon.
If successful, the breakout could take the price to $1.18 trillion, which is the measured move out of the bull flag. This would also result in a new all-time high, boding well for the rest of this bull market cycle.
Total3 cup and handle pattern targets $2 trillion
Source: TradingView
Looking at Total3 on the weekly chart, a cup and handle pattern becomes obvious. The handle is still forming, but if the market cap can get back to $1.13 trillion, this will complete the pattern. A breakout of the neckline would perhaps lead to a retest and confirmation. The measured move would be to $2 trillion – slightly more than a 2x from the current price.
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.
Credit: Source link
