Altcoins are firmly in the red again on Friday, and support for their total market cap is in danger of breaking. How firmly do you believe in what is being done in the cryptocurrency space? Is this the time to sell and get out while you still can?
The right decision needs to be made
The resolve of altcoin holders is about to be tested once more. The total market cap of all the altcoins is perilously close to breaking the support at $700 billion. Selling must be an option, but if this is a fakeout, losing one's position could hurt. Also, getting back in again could be costly. The right decision needs to be made.
The bearish case
Source: Coingecko/Trading View
Looking at the Total 3 chart (market cap of all cryptocurrencies, excluding $BTC and $ETH) on the daily time frame, the picture is clear. Support is being held at $700 billion, and also at the trend line below. If the price drops this level, there is support at $665 billion, and then strong support at $646 billion.
Continuing the bearish case, there is a clear M pattern, and should the price fall below the neckline and confirm this break, a measured move could take the price down to $590 billion, an 18% loss overall for the altcoin market.
Bull markets go up
All this said, we are in a bull market, and yes, there are corrections in a bull market, but prices will generally go up. Of course, one has to factor in that the main driver for this bull market, as it is in every bull market thus far, is bitcoin, the king of the cryptocurrencies.
What bitcoin does has a huge impact on what happens to altcoins. The question might be: “Is bitcoin going to suffer a large correction?” Of course, this can always happen, but so far all the corrections for this bull market have not been much above 20%. The current one measures around 17.5%.
Bitcoin has further to go in an upside direction. Of course, this is arguable, but taking data from previous bull markets into consideration, this certainly looks to be the case.
If bitcoin goes up, some of the more fundamentally sound altcoins are likely to go up further. Selling one's positions now could be a costly mistake if the bull market takes off again.
How firmly do you believe in crypto?
All are personally responsible for their own investments and trades, and at this juncture it would be de rigueur to say “get advice from a certified financial advisor”, but we all know that financial advisors are all embedded in traditional finance, and mostly know nothing about crypto, except what they are told by the mainstream narrative.
That said, you have to make your own personal decisions, unless you expect the government to make them for you, so... how firmly do you believe in crypto?
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.
