Categories: BitcoinBitcoin CashCryptoEOSEthereumLitecoinRipple

Crypto Market Cap at Critical Resistance, Is Altcoin Season Around The Corner?

The current crypto winter and bear market has been brutal for Bitcoin investors who are now underwater, but it’s been even worse for many altcoin holders.

Most of the thousands of altcoins on the market have fallen as much as 99% from their all-time high prices, have reached extremely oversold conditions, and are at the absolute bottom of the barrel sentiment-wise. However, according to one crypto analyst, altcoins are on the verge of breaking out of long-term downtrend resistance and an “altseason” may be around the corner.

Analyst: Altcoin Crypto Market Cap at Pivotal Resistance Point

Altcoins such as Ethereum and XRP have had a much further fall from their all-time high prices than their eldest sibling, Bitcoin. Bitcoin has fallen roughly 85% from its previous peak back in December 2017, while number 2 and number 3 cryptocurrencies Ethereum and XRP respectively have each fallen 90% from their high points.

Related Reading | XRP Beware? Industry Reacts to JP Morgan ‘JPM Coin’ Crypto Announcement

The added sell pressure has caused sentiment around altcoins to be at extreme lows, but the tides may be turning soon, if critical resistance can be broken.

According to a chart shared by prominent crypto analyst GalaxyBTC, the altcoin market cap – an aggregate of the total crypto market cap minus BTC – is at pivotal overhead resistance that has served as such all the way since January of 2018.

The early signs of an “altseason” are already showing, with Ethereum, EOS, and BCH all posting 15-25% gains on the day, while Bitcoin rose just 8.5% by comparison. The rest of the altcoin market is a sea of green today, as a clear sentiment change is occurring in the crypto space.

Bitcoin Has Long to Go Before Downtrend is Broken, BTC Dominance to Suffer

GalaxyBTC also shared some thoughts around a pattern commonly found in cryptocurrency trading. The analyst discovered that oftentimes following a build-up of BTC dominance – a metric that weighs Bitcoin’s market cap against the rest of the crypto market – it breaks down, causing a spike in altcoin dominance also referred to as an “altseason.”

The reason for this could be normal ebb and flow of capital to and from Bitcoin into altcoins, faith being restored by crypto market participants, or quite possibly due to the fact that most altcoins have broken through downtrend resistance, while Bitcoin hasn’t.

A chart shared by Senior Market Analyst for eToro Mati Greenspan shows that Bitcoin still has a long way to go before it brushes up against the downtrend resistance. The resistance dates back to January of 2018, after the first ever crypto’s parabolic advance was broken, kicking off the bear market that continues even today.

Related Reading | Bottom Doesn’t Matter, Last Time General Population Can Afford Entire BTC

Altcoins and Bitcoin are closely correlated, so a strong rally in the altcoin market could help restore confidence in Bitcoin again, and drag Bitcoin up through resistance along with the rest of the cryptosphere.

Featured image from Shutterstock
Crypto Market Cap at Critical Resistance, Is Altcoin Season Around The Corner? was last modified: March 11th, 2019 by Tony Spilotro
Share
Tags: Altcoin SeasonaltcoinsbitcoincryptoethereumLitecoinxrp

Recent Posts

  • Bitcoin
  • Crypto

Analyst: Despite Bitcoin’s Current Stability, a 30% Pullback Could be Imminent

Despite facing some levels of volatility over the past week, Bitcoin has now been able to find some stability and…

50 mins ago
  • Bitcoin

New Browser Extension Hopes to Make it Easy to Get Used to Using Bitcoin in Retail

A new browser extension has just been launched that hopes to make it easier for people to start thinking in…

2 hours ago
  • Bitcoin
  • Crypto

Crypto Industry Celebrates Annual Bitcoin Pizza Day

Today marks the nine-year anniversary of the first ever reported transaction using Bitcoin to make a purchase. A Florida-based, early…

3 hours ago
  • Analysis
  • Bitcoin
  • Crypto
  • Fundamental
  • Industry

Here’s Why Gold Bull Peter Schiff is Blessing in Disguise for Bitcoin

The economic atmosphere in the United States has changed drastically over the last six months. Ahead of last year's close,…

3 hours ago
  • Ethereum
  • Technical

Ethereum Foundation’s Determination is “Very” Bullish for ETH

Ethereum (ETH) up 15.8 percent $30 million set aside for Ethereum’s ecosystem development The Ethereum Foundation appears to be fast-tracking…

5 hours ago
  • Bitcoin
  • Technical

Tether Limited “Investing” in Bitcoin (BTC) is a Bullish Signal

Bitcoin (BTC) ranging but stable A portion of Tether reserves was used to invest in Bitcoin (BTC) Tether and iFinex,…

6 hours ago