Bitcoin (BTC) broke out on Sunday and Monday has seen a continuation of the surge. What about the altcoins? Not many alts are matching Bitcoin’s performance right now. However, the signs are that an altcoin breakout is not far away.
Altcoins approach breakout
Source: TradingView
The Total2 chart tracks the combined market capitalization of all the cryptocurrencies, excluding Bitcoin. The weekly chart is telling us that the altcoins are very close to either breaking out of a descending trendline that stretches all the way back to November 2021, or they will be rejected from it. The price action shows a series of higher lows, but in order to make a higher high the trendline will need to be broken.
Moving down the chart, the Relative Strength Index (RSI) is also at a critical stage. It can be seen that if the indicator line is able to break through the descending trendline on the RSI, this would likely coincide with a breakout in the price action.
At the bottom of the chart, the Stochastic RSI indicators are pointing down again. However, as previously happened, the indicators could turn back around again. This would certainly provide a lot more upside price momentum.
Bitcoin dominance gets a bounce
Source: TradingView
Bitcoin dominance (BTC.D) is obviously one of the first charts to refer to when checking out the chances of an altcoin surge. The above 12-hour chart shows that Bitcoin dominance fell out the bottom of the bear flag, but was then able to bounce from the ascending trendline that goes all the way back to November 2022, with extra help from the horizontal support at 60%.
It might appear that a crucial point has been reached. The bottom of the bear flag is combining with other horizontal resistance to perhaps put a halt to further Bitcoin dominance gains from the current price level.
Bitcoin dominance trendline is all-important for altcoin season
Source: TradingView
Moving out into the weekly time frame the importance of the ascending trendline can be understood. It can probably be safely said that an incredible altcoin season depends on whether Bitcoin dominance falls below the trendline, or whether it continues to bounce.
At the bottom of the chart, the Stochastic RSI indicators have almost hit the floor before turning up again. If these indicators drag along the bottom for a period of time, this could be what the altcoin bulls are waiting for.
$ETH to retest breakout and then go higher
Source: TradingView
Ethereum (ETH) is the premier altcoin, and therefore if $ETH is successful, the rest of the altcoins will undoubtedly follow. The weekly chart for the $ETH price reveals the supremely important breakout of resistance levels that go back to 2021.
That said, it is likely that $ETH goes back to test this horizontal level as support, whether the price goes back to $4,100, or $4,000.
At the bottom of the chart, the Stochastic RSI indicators will need to turn back around. As can be seen, this may already be starting to happen.
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.
