Alternative Cryptocurrencies Poised for Next Phase of Bull Market.
Typical Altcoin Volatility
As the current bull market fluctuates, many altcoin investors are likely nervously monitoring their crypto portfolios, perhaps even considering liquidating assets, as some altcoins have depreciated by more than 40% in this latest correction.
Nevertheless, it might be suggested that unless you are an active trader, it could be more beneficial to research the most promising altcoins and hold them for the long term. If the bull market follows historical trends, most assets will appreciate, and it's a matter of enduring the substantial volatility characteristic of this asset class.
Altcoins Market Cap in a Bull Pennant
Source: TradingView
On a shorter time frame, the Total 2 chart (market capitalization of all cryptocurrencies excluding Bitcoin) indicates a bounce from the lower trend line of the bull pennant pattern. This suggests a potential rise to the upper trend line and a possible breakout from this formation.
Strong Altcoins Market Cap Structure.Examining a more macro perspective on the weekly time frame, the altcoin market cap is displaying robust price structure. The current flag pattern may be setting the stage for the next upward movement. The $1 trillion market cap level is currently serving as a key support level.
### Breakout Catalyst and Price Predictions
Source: TradingView
Further extending the view to a monthly time frame and applying Fibonacci retracement levels to the entire bull market, it is evident that the recent price range is confined between the 0.618 Fibonacci level at the upper end and the 0.382 level at the lower end.
The 0.618 Fibonacci level is crucial in this bull market, and surpassing it would require a substantial surge. The catalyst for this surge could be a breakout from the bull pennant. The projected target for this move is $1.65 trillion, approaching the $1.7 trillion all-time high. Further targets, based on Fibonacci extension levels, are $2.5 trillion (1.618) and $3.76 trillion (2.618).
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