$BTC #Binance The cryptocurrency market is going through nervous times as negative price action has been seen in recent weeks. However, on a more macro level, altcoins still look very positive. Is the bull market still taking shape?
Typical Altcoin Volatility
As the current bull market ebbs and flows, many altcoin investors are probably looking nervously at their holdings and perhaps even thinking about selling, as some of their altcoins have plunged over 40% in this latest reversal.
That being said, one could argue that unless you are a trader, it might be best to research the most promising altcoins and then simply invest in them over the next year. If the bull market does what it has always done before, most boats will float, and it is simply a case of trying to ignore the enormous volatility that is common to this asset class.
Altcoins MC inside a bullish pennant
Fuente: TradingView
On the shorter time frame of the daily on the Total 2 chart (market cap of all cryptocurrencies except $BTC) you can see that a bounce has occurred from the lower trend line of the bullish pennant. From here one could expect a rise to the top and a possible breakout.
Great Altcoins MC Price Structure
Fuente: TradingView
Zooming in on the more macro view of the weekly timeframe, you can see how the altcoin market cap is forming an excellent price structure. The current flag may be building the foundation for the next bullish move. The all-important $1 trillion market cap level is the current support.
Breakout catalyst and price predictions.
Fuente: TradingView
Zooming out even further on the monthly time frame, and also plotting the Fibonacci levels for this entire bull market, it becomes clear that the price range over the past four months is limited by the 0.618 Fibonacci on the upside and the 0.382 Fibonacci on the upside. the bottom of the range.
This 0.618 Fibonacci level is the most important in this bull market, and surpassing it will require a strong rally. That being said, the catalyst for this rise could certainly be the breakout of the bullish pennant. The measured move for this would be $1.65 trillion, which would be slightly below the all-time high of $1.7 trillion. Other price discovery targets, reached with Fibonacci extension levels, would be $2.5 trillion (1.618) and $3.76 trillion (2.618).
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.$BTC
