- The altcoin and total market caps are forming a “cup and handle” pattern, suggesting a bullish setup.
- A breakout above $900 billion in the altcoin market cap could signal the start of a new altseason.
- Traders are closely monitoring resistance levels for potential gains in smaller cryptocurrencies.
Cryptocurrency market may experience some changes in the near future as altcoins await their breakout points. New charts show another large macro “cup and handle” formation in both the altcoin market cap and total crypto market cap charting pattern frequently seen as bullish by technical analysts. If this happens, then we’re looking at possible initiation of the Altcourse, a period in which most of the altcoins register high growth rates. It may be finishing this pattern, in much the same way that the altcoin phenomenon of 2020 appeared, providing food for thought to investors.
Cup and Handle Pattern Points to Altcoin Surge
It can be seen from the above chart that cup and handle formation, especially in altcoin as well as the total market cap chart, are well defined and have been regarded by technical analysts as a bullish pattern set up. It usually develops during a building process where the price comes down and then up, and creates a rounded base or a ‘cup’, followed by a short period of consolidation or a retreat or retracement which is the ‘handle’. As such, for altcoins, this pattern indicates that another large price increase may be expected as the market is currently gently probing the upper limit of the handle.
Potential for “Altseason” and Key Levels to Watch
Should the breakout occur, it will create what it is referred to as altseason in the world of cryptocurrencies, where the rest of the cryptos gain value faster than BTC. In the past such periods have included diversification of investor portfolios, speculation in new projects, and general market strength. This means that the fundamentals supporting altcoins are now at levels that suggest a repeat of the 2020 breakout.
As altcoins approach a breakout situation analysts suggest paying more attention to the resistance and support on the charts. Currently, the altcoin market cap is approximately $880,000,000,000 and approaching this $900B point can be a state that activates the further evolution of the market.
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