The altcoin market is smouldering right now. Are the altcoins about to explode upwards, following on the coat tails of bitcoin? Or is the altcoin market cap going to be rejected at the current important resistance level?
Altcoins await $BTC first move
The altcoins are potentially about to break loose. Important levels could be about to be breached, and with Nvidia quarterly earnings about to be announced today, a positive report could be the catalyst for the next stage of the altcoin bull market.
That said, altcoins aren’t going to explode if bitcoin doesn’t make the first move. Therefore, with $BTC looking extremely positive right now, it is only a matter of time before the king of the cryptocurrencies starts its next upward surge, and the altcoins can then follow, and very likely start to out-perform.
Bitcoin dominance break?
Source: Coingecko/TradingView
The indicator that gives the signal for the start of an altcoin run is the Bitcoin Dominance chart. On the weekly chart it can be seen that dominance is in a wedge pattern. This type of pattern will normally break downwards, and therefore a close eye should be kept out for a break of the bottom of the wedge.
Total altcoins capitalisation at resistance
Source: Coingecko/TradingView
A lot is rightly being made of the imminent approval of Spot Ethereum ETFs by the SEC. However, a sell the news event could happen for $ETH which has already pumped quite violently. That said, altcoins in general are likely to be positively impacted by such an announcement. The Total3 chart depicts the combined market capitalization of all the altcoins, excluding $BTC and $ETH. Here it can be seen that the price is currently up against resistance. However, the weekly stochastic RSI has just turned upwards, promising a likely large amount of momentum, having the potential to send the altcoins skywards.
Spot Ethereum ETF approval to spark wide-reaching repercussions
The possible approval of the Spot Ethereum ETFs could have wide-reaching repercussions across the whole crypto market. This can lead to ethereum finally being recognised by the SEC as a commodity rather than a security - and if this is the case with $ETH, there will be a whole lot of altcoins that might also fit this bill. Exciting times ahead.
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.
