The entire cryptocurrency sector is on the verge of breaking out. Bitcoin (BTC/USD), the undisputed king, has just broken out of its 7-month long bull flag, and the rest of crypto looks as though it’s about to follow. With huge waves of global liquidity about to enter the monetary system, crypto is likely to be in its element.
Cryptocurrencies about to follow Bitcoin
Things certainly aren’t signed and sealed yet, but the combined market capitalization of crypto is at the top of a bull flag, and if Bitcoin is successful in breaking out of its own bull flag, the rest of crypto has great potential to follow suit.
Source: TradingView
The weekly time frame chart for the Crypto Total Market Cap shows that not only is the combined market cap of crypto up against the $2.3 trillion resistance, but also just below the 0.618 Fibonacci level at $2.33 trillion, and more importantly, just below the top trend line of a bull flag.
If the Crypto Total Market Cap can close a weekly candle above the resistance and the bull flag upper trend line, this would be very bullish for crypto assets going forward. At the bottom of the chart, the Stochastic RSI is showing a potential cross up - an extremely exciting prospect for bulls, should this cross-up occur.
Total3 still at resistance
Source: TradingView
The Total3 chart is the combined market cap of all cryptocurrencies, with the exception of $BTC and $ETH. This gives a better picture for how the altcoins are doing. Once again, this chart shows a bull flag for the price action. However, $637 billion is a very strong horizontal resistance, which the price is currently struggling with, even though it has broken out of the bull flag.
The bottom of the chart shows the Stochastic RSI. However, here the indicators are crossing down, therefore this is suggesting that altcoin buying is very much secondary to that of Bitcoin.
Bitcoin Dominance pulling away
Source: TradingView
The Bitcoin Dominance chart provides a similar view. Dominance is now crossing up through the 58.4% resistance level, showing that Bitcoin is very much the leader of the crypto market. If $BTC dominance continues to pull away, the next major resistance is at 64%, a dominance level not seen since January 2021.
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.
