Altcoins
Bitcoin Critical Indicator Suggests a ‘Change in Sentiment’; Is it finally time for altcoins to shine?
Eric Krown Crypto Analyst recently stated that he expects possible bullish trends in some altcoins due to technical indicators and changes in market sentiment. The analyst also said to keep an eye on weaker altcoins that may struggle to continue rising. He said today’s topic is about altcoins: what they are currently doing and when we might expect some action from them. There are some signs starting to appear, which will likely activate within the next couple of weeks, as this month comes to a close. The analyst looked at Total 3, Total 2, and Bitcoin dominance.
Bitcoin Dominance Quarterly RSI Setting: One critical indicator, the quarterly RSI for Bitcoin dominance, is currently showing signs of hidden bearish divergence. This divergence occurs when the RSI indicates higher highs while the corresponding price action displays lower highs, especially evident around the 50% retracement level.
This setup suggests a potential stall in Bitcoin’s dominance of the broader cryptocurrency market, especially important if monthly closes by the end of the month fall around or below the 55.35% mark. Despite this, it is essential to note that not all altcoins may benefit equally from a possible decline in Bitcoin’s dominance. Stronger projects are expected to maintain resilience and potentially outperform weaker counterparts.
Monthly changes in market momentum and sentiment
On the monthly time horizon, the Stochastic Momentum of Bitcoin dominance is destined to turn downwards if closings fall below approximately 55.18%. This change could indicate a broader shift in sentiment among investors, possibly triggering adjustments in portfolio allocations towards more robust altcoins.
Total 3: Consolidation and potential upside
Excluding Bitcoin and Ethereum, Total 3 reflects the market capitalization of all other cryptocurrencies. Currently, Total 3 shows a consolidation pattern, suggesting a period of price stabilization. The crucial support level to watch is around 500 billion, holding above which could pave the way for renewed bullish momentum. If Total3 manages to recover the recent highs reached in late May, around 784 billion, this could signify a bullish recovery and potentially set new cyclical highs.
Looking at the stochastic momentum of Total 3 and Total 2, he pointed out that while the monthly momentum for Total 3 was waning, similar patterns in the past have led to strong upward movements. Total 2 showed a similar pattern, suggesting that strong momentum may be ahead.