The Altcoins are at test as the charts show that the wider crypto market could provide more clues as to where the altcoins are headed. Let’s find out more in the altcoin news below.
The charts show how altcoins are potentially in their most critical moment yet and they are facing the most important weekly close at the end of the week. As 2020 started, most of the altcoins broke out of the two-year downtrend and carried on into the market with multiple recovery rallies. Ethereum, Chainlink, Tezos all outperformed bitcoin but eventually, all of them were caught up in the Black Thursday when most of them crashed. The altcoins got their value wiped out and sent them tumbling back to the lower lows.
While most of the assets broke out of their long-term trendlines, the altcoin market cap compared with the USD shows that the downtrend line was still intact and it could be responsible for the cryptocurrencies dropping to new lows. During the collapse, the breakout of the altcoin/BTC chart shows the dominance of Bitcoin over the altcoin market. The downtrend line on Bitcoin dominance is holding as a support and signals that this weekly close could be the most critical one for the altcoins.
In the chart, we can see that the altcoins are at test since the downtrend line has been pierced by the recent price rally. The push higher from most of the altcoins happened because of the major XRP pump this week along with another ETH rally. The same downtrend on the total crypto market cap without bitcoin shows that the buyers were rejected but the recent price action resulted in another attempt that is still holding on.
In the charts, we can also see that the downtrend line of the Bitcoin dominance was already broken and is being retested on weekly timeframes. The line holding for the altcoins could mean that an alt season is coming and the alternative assets could outperform Bitcoin. However, with the Bitcoin halving, many of the analysts believe that the altcoins could get crushed by the major volatility in Bitcoin which could suggest that the line doesn’t hold and will crash further.
If the Bitcoin dominance line holds, the altcoins will have no diagonal resistance to fight with and will have a bigger chance of reclaiming higher horizontal support levels and will even increase higher.
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