Altcoins - Still Look Ready to Rally I will post an update on TOTAL 3 as well, but here is TOTAL 2 (alts excluding BTC). Just to back track, we made a post on May 22, 2023 outlining how TOTAL 2 was maintaining our old resistance trendline as new support. This remains true. Even with the SEC attack against altcoins they were able to hold the candle bodies as support upon our trendline and have caught a bid ever since. Here is a link to that post.
Current day we might be seeing a breakout on the 2W chart with a smaller fractal pattern. We see something very similar to the 2019-2020 Fractal pattern, just in a more condensed time period.
In 2019-2020 we formed a clear base for TOTAL2. This was constructed around $37 billion and had a double bottom at FWB:37B during the covid crash. We also formed a very clean symmetrical triangle (orange trendlines). Once we broke out of our triangle, marketcap came back down to test old resistance as new support and after that the bull market began.
Current day, we formed a clear base around the $430B level and had a double bottom during the SEC Security FUD at $430B. The $430B level was also our top in 2017 so it is creating a massive base of old macro resistance flipped into new macro support. We have also formed a symmetrical triangle (orange trendline) that marketcap recently broke out from. Marketcap is currently testing our trendline of old resistance as new support. If successful, we could see a large resurgence of altcoins.
The only difference is if we do have an expansion of the altcoin market I do not think it will be the start of the bullrun as we saw in the 2019-2020 cycle. I think it is a little to early according to the 4 year cycle theory. I also feel we have not seen true capitulation of altcoins. Will keep you all updated with the TOTAL cryptomarketcap as more developments are made in the charts.
