- Crypto market consolidation nears $3T support; buyers must act to sustain bullish momentum or risk deeper corrections.
- Bitcoin surges past $2T, while altcoins struggle to reclaim past highs, relying on utility and strong narratives to thrive.
- Altcoin markets face zero-sum dynamics as Bitcoin dominates, highlighting the need for fresh capital and innovative use cases.
According to crypto analyst IncomeSharks, the total crypto market cap stands at $3.23 trillion, reflecting a minor dip of 0.06% from the previous day. Despite the recent bearish sentiment, the market has added $1.9 trillion since September, maintaining a bullish structure. Meanwhile, Ki Young Ju highlights that altcoin markets remain a zero-sum game, struggling to attract fresh capital as Bitcoin continues to dominate.
IncomeSharks’ Analysis: Bullish Patterns and Consolidation
IncomeSharks observed a strong rally from July to November, with consistently higher highs and higher lows. This momentum pushed the market cap above $3 trillion for the first time. However, resistance near $3.6 trillion in December led to a descending wedge pattern. The market now shows lower highs and higher lows, signaling consolidation.
Source: IncomeSharks
A key support zone of around $3 trillion has held firm, acting as a critical area for buyers to defend. Recent market action has tested this level multiple times, underscoring its importance. Currently, the market hovers near the lower boundary of the wedge, with sellers exerting short-term pressure.
This consolidation phase indicates a pivotal decision point. Buyers must regain control near $3 trillion to maintain the bullish structure. However, a breakdown below this support could signal a deeper correction.
Ki Young Ju’s Perspective: Altcoin Markets Under Pressure
CEO of Cryptoquant Ki Young Ju provides a contrasting view, emphasizing challenges in the altcoin market. Bitcoin’s value has climbed past $2 trillion but altcoins are still far from their peak. They had a big surge during the 2021 DeFi and NFT craze but took a hard hit in 2022.
Source: Ki Young Ju
Despite a comeback, the altcoin market worth of about $1.7 trillion is insufficient to challenge Bitcoin’s hegemony. Ki highlights that only altcoins with strong use cases and compelling narratives will survive. The lack of fresh capital inflows into altcoin markets reinforces their dependence on existing participants.
