Is it finally time for altcoins to shine as critical Bitcoin indicator suggests shift in sentiment
Eric Krown Crypto Analyst recently shared his insights on potential upward trends in certain altcoins, driven by technical indicators and shifts in market sentiment. He also highlighted the importance of monitoring weaker altcoins that may struggle to maintain their upward trajectory. The focus of today’s discussion is solely on altcoins, their current status, and when we can anticipate some significant movements. There are early signals emerging that are likely to materialize in the next two weeks as the month comes to a close. Krown examined the total 3, total 2, and Bitcoin dominance to gauge the market dynamics.
Bitcoin Dominance Quarterly RSI Setup:
A key metric to consider is the quarterly RSI for Bitcoin dominance, which is indicating hidden bearish divergence. This divergence occurs when the RSI shows higher highs while the price action displays lower highs, particularly noticeable around the 50% retracement level. This setup suggests a potential slowdown in Bitcoin’s dominance over the broader cryptocurrency market, especially if monthly closures dip around or below the 55.35% threshold. It’s important to note that not all altcoins will react equally to any decline in Bitcoin dominance, with stronger projects expected to exhibit resilience and possibly outperform weaker contenders.
Monthly Momentum Shifts and Market Sentiment:
On the monthly timeframe, Bitcoin dominance Stochastic Momentum is on track to turn downwards if closures fall below approximately 55.18%. This shift could signal a shift in sentiment among investors, potentially leading to adjustments in portfolio allocations towards more robust altcoins.
Total 3: Consolidation and Potential Upside:
Total 3, excluding Bitcoin and Ethereum, represents the combined market cap of all other cryptocurrencies. Currently, Total 3 is displaying a consolidative pattern, indicating a period of price stabilization. The critical support level to monitor is around 500 billion, maintaining above which could pave the way for a renewed upward momentum. If Total 3 manages to reclaim recent highs from late May, around 784 billion, it could signify a bullish resurgence and potentially set new cycle highs.
Assessing Total 3 & Total 2 Stochastic Momentum, Krown noted that while monthly momentum for Total 3 was trending downward, historical patterns suggest that such movements have often preceded strong upward trends. Total 2 exhibited a similar pattern, hinting at robust momentum ahead.
In conclusion, Krown’s analysis provides valuable insights for investors interested in altcoins, Bitcoin, and the broader cryptocurrency market landscape. Stay informed with the latest crypto news and price analysis to make informed decisions in this dynamic market environment.