As a researcher with extensive experience in the cryptocurrency market, I believe that despite the recent negative price action, the altcoin market is still showing promising signs of a bull market that could be taking shape. The volatility we are seeing now is typical for this asset class and should not deter long-term investors.
From my perspective as a researcher studying the cryptocurrency market, the recent turbulence with negative price actions over the past few weeks has understandably left some jitters. Nevertheless, on a broader time horizon, I’ve noticed that altcoins continue to exhibit promising trends. So, the question remains: is the current bull market merely in its infancy?
Typical altcoin volatility
During the present bull market’s fluctuations, it is natural for altcoin investors to feel apprehensive and consider offloading some of their investments, given that certain altcoins have experienced significant declines – over 40% – in value during this recent market downturn.
As an analyst, I would argue that if you’re not a trader, it might be more beneficial for you to conduct thorough research on the most promising altcoins and consider investing in them for the next year or so. Historically, the crypto market has experienced bull runs where most assets have seen significant growth. Therefore, focusing on these potential winners and enduring the volatility that is inherent to this asset class could yield positive results.
Altcoins MC inside a bull pennant
As a researcher studying the daily market capitalization chart of cryptocurrencies excluding Bitcoin (BTC), I’ve noticed an intriguing development in the shorter time frame. The price has rebounded from the bottom trendline of what appears to be a bull pennant formation. This pattern, if confirmed, could lead to a significant rise and a potential breakout above the resistance level.
Great Altcoins MC price structure
From a broader perspective of a week’s timeframe, the altcoin marketcap exhibits an intriguing price pattern. The potential flag forming now could be the foundation for the upcoming price surge. Notably, the significant support lies at the $1 trillion marketcap level.
Breakout catalyst and price predictions
Looking at a broader perspective on a monthly timeframe and adding Fibonacci levels to the entirety of this bull market reveals that the price movement over the past four months is confined between the 0.618 Fibonacci level above, and the 0.382 Fibonacci level below.
In the current bull market, the 0.618 Fibonacci level, valued at approximately $X, holds significant importance. Overcoming this barrier requires a strong market push. A potential trigger for such a forceful advance could be the rupture of the bull pennant pattern. The resulting increase, as calculated using the Fibonacci sequence, would amount to around $1.65 trillion, falling just short of the all-time high of $1.7 trillion. Beyond these levels, further price targets, determined by the application of Fibonacci extension levels, include $2.5 trillion (representing 1.618) and $3.76 trillion (representing 2.618).
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2024-06-19 14:04