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Altcoins look sound for next stage of bull market

Altcoins look sound for next stage of bull market

CryptodailyCryptodaily2024/06/19 11:16
By:Laurie Dunn

Table of Contents

  • Typical altcoin volatility
  • Altcoins MC inside a bull pennant
  • Great Altcoins MC price structure
  • Breakout catalyst and price predictions

The cryptocurrency market is currently experiencing nervous times as the last few weeks have seen negative price action. However, on a more macro level the altcoins are still looking very positive. Is the bull market still just taking shape?

Typical altcoin volatility

As the current bull market ebbs and flows many altcoin investors are probably nervously eyeing their holdings and are perhaps even thinking of selling, as some of their altcoins have crashed more than 40% in this latest reversal .

That said, it might be argued that unless you are a trader, it could be better to research the most promising altcoins and then just invest in them for the next year or so. If the bull market does what it always has done previously, most boats will float, and it’s just a case of trying to ignore the huge volatility that is common to this asset class.

Altcoins MC inside a bull pennant

Source: TradingView

In the shorter time frame of the daily on the Total 2 chart (market capitalization of all cryptocurrencies except $BTC) it can be seen that a bounce has taken place from the bottom trend line of the bull pennant. A rise to the top and a potential breakout could potentially be expected from here. 

Great Altcoins MC price structure

Source: TradingView

Zooming out into the more macro view of the weekly time frame, it can be seen how the altcoin market cap is forming some great price structure. The current flag is conceivably building out the base for the next move higher. The important $1 trillion market cap level is current support.

Breakout catalyst and price predictions

Source: TradingView

Zooming further out again on the monthly time frame, and also drawing the fibonacci levels for the whole of this bull market, it becomes clear that the price range over the last four months is bounded by the 0.618 fibonacci on the upside, and the 0.382 at the bottom of the range.

This 0.618 fibonacci level is the most important of this bull market, and getting above this will take a powerful surge. That said, the catalyst for this surge could certainly be the breakout of the bull pennant. The measured move for this would be $1.65 trillion, which would be slightly under the $1.7 trillion all-time high. Further targets into price discovery, arrived at with the fibonacci extension levels, would be $2.5 trillion (1.618) and $3.76 trillion (2.618). 

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.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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