Bitcoin (BTC) is bouncing after a confirmation of the major $69,000 horizontal support. Is this the last chance to get into altcoins before crypto potentially explodes?
Strong recovery for $BTC
When the stock market took a bit of a battering on Thursday, the follow-through into Bitcoin and the crypto market sent prices plummeting for a short window of time. However, Friday is witnessing a strong recovery so far from $BTC, and the all-time high is not that far away. With this in mind, could this be one of the last opportunities to get into the top-performing altcoins?
Total3 triangle breakout soon
Source: TradingView
The Total3 chart shows the price action for the combined market capitalisation of all cryptocurrencies, excepting $BTC and $ETH. It can be observed that the altcoin market cap has broken out of its long-time bull flag to the upside, and has confirmed the breakout.
There is still the issue of a series of lower highs, but at the same time, there is a strong series of higher lows, which is forcing the price into the apex of a triangle which is likely to break soon.
The market cap is currently at a very strong support level, bolstered by the bottom trendline of the triangle. Therefore, a bounce from here might be more likely than not.
U.S. Dollar Index potential rejection
Source: TradingView
The strength of the U.S. dollar will always have a say in the crypto market, and currently the U.S. Dollar Index (DXY) has been on a bit of a tear. Over the last few weeks the dollar has gained against a basket of other major fiat currencies.
However, the DXY reached the descending trendline and looks as though it may be rejected from here. Into the bargain a descending triangle is forming. If the Dollar is forced out of the bottom, which is more likely than not, its resulting weakness has the potential to add fuel to the crypto cause.
Still a good time to get into the alts?
To be very honest, the time for getting into the fundamentally strong altcoins was back in early August, when Bitcoin was acting as if it might drag the rest of crypto into an early bear market. That said, the times to buy are at those moments when it seems that everything is going to collapse.
With this in mind, is it still worth taking a punt on some of the fast horses among the altcoins? As long as your risk tolerance is high, and your risk management is good, taking a position after the breakout and confirmation for Total3 could work out well.
Global liquidity is still to ramp up as central banks are forced to print vast quantities of money over the next several months. Bitcoin can thrive in this environment - some of the altcoins could do even better.
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.
