When Bitcoin dropped to $92,000 in the last 24 hours, altcoins followed suit, turning red. However, an analyst on X (formerly Twitter), Jason Marks, believes a bullish turnaround for altcoins may be imminent. He has identified a fractal that could cause altcoins to surge.
Altcoin Fractal Suggests Significant Growth
According to Marks' chart, the fractal could push the altcoin market capitalization to $1.85 trillion. Currently, the total market value of altcoins is $925 billion. However, the ongoing altcoin correction needs to conclude before such gains can be achieved.
In the past 24 hours, several major altcoins have seen losses: XRP down 2.79%, Dogecoin (DOGE) down 2.67%, Cardano (ADA) down 3.49%, and Chainlink (LINK) down 4.62%. Additionally, Bitget Token (BGB) plummeted 11.49% and Polkadot (DOT) fell 5.88%. However, the meme coin Pepe (PEPE) went against the trend, rising 5.24% to a trading level of $0.00001923.
Factors Influencing Altcoin Growth
For altcoins to increase significantly, Bitcoin's dominance needs to decrease. Currently, Bitcoin holds 56.7% market dominance while trading around $92,000.
The potential launch of spot altcoin exchange-traded funds (ETFs) next year could also drive the rise of altcoins. These ETFs could provide a more accessible way for investors to engage with altcoins, boosting demand and potentially driving prices up.
Altcoin Market Analysis
The weekly chart for altcoin market capitalization shows a Relative Strength Index (RSI) of 60.95. This indicates that buyers are in control of the market, but the trend of the RSI suggests that the market may continue to move sideways for a while.
Furthermore, the MACD indicator also suggests a potential bearish divergence. The MACD line (green) is getting closer to the signal line (red), indicating that a bearish divergence could occur, leading to a bearish weekly chart for altcoins. The bullish momentum of the MACD chart is also weakening.
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