As a seasoned analyst with over two decades of experience in financial markets, I’ve witnessed the rise and fall of numerous trends and cycles. The current state of the cryptocurrency sector is reminiscent of the dot-com bubble of the late 90s – exciting, volatile, and brimming with potential.
The cryptocurrency market appears poised for a significant surge. Leading the charge is Bitcoin (BTC/USD), which has recently burst through a seven-month-long bullish pattern, hinting that other cryptocurrencies may soon follow suit. With vast pools of global liquidity set to flow into the financial system, it seems that the cryptocurrency landscape will thrive.
Cryptocurrencies about to follow Bitcoin
As an analyst, I find myself observing a promising trend in the cryptocurrency market. Although nothing is set in stone just yet, the collective market capitalization of cryptos appears to be forming a “bull flag” pattern. If Bitcoin manages to break free from its own bull flag formation, it could pave the way for other cryptos to potentially mirror this upward trajectory.
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.
Should the overall Cryptocurrency Market Cap manage to end the weekly cycle above its resistance level and the upper trend line of the bull flag, it suggests a highly optimistic outlook for cryptocurrencies in the near future. At the bottom of the chart, there’s a possibility of a Stochastic RSI crossover happening – a development that would be incredibly enticing to bullish investors, if indeed this crossover occurs.
Total3 still at resistance
In simpler terms, the Total3 graph displays the total value of all cryptocurrencies excluding Bitcoin and Ethereum. This provides a clearer view of how alternative coins are performing. Currently, the chart indicates a bullish trend, represented by a ‘bull flag’. However, the price is facing a significant resistance at around $637 billion, which it’s having trouble overcoming, despite breaking free from the bull flag pattern.
At the base of the graph, you’ll find the Stochastic RSI. Currently, these indicators are intersecting downwards, which implies that the demand for altcoins is significantly lower compared to Bitcoin at this moment.
Bitcoin Dominance pulling away
The Bitcoin Leadership graph presents a comparable perspective. Currently, Bitcoin’s dominance is breaking through the 58.4% barrier, indicating that it is clearly in charge of the cryptocurrency market. If Bitcoin’s dominance keeps increasing, the next significant resistance will be at 64%, a level not seen since January 2021.
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2024-10-16 14:10