The Uncertain Crypto Market
The current crypto market is filled with uncertainty as small rallies from bitcoin are not leading to significant gains. This indecisiveness is affecting altcoins even more, making traders cautious.
The Fear and Greed Index, which measures market sentiment, is also in neutral territory, reflecting the overall uncertainty. As a result, many traders are staying on the sidelines and investors are holding their positions.
There is debate about whether there is significant retail selling happening, as some are looking beyond the short term and hoping for bitcoin to find support and reverse the current downtrend.
For those who have not sold yet, it may be best to hold on and wait for the market correction to play out, especially since bitcoin is already down 18%. If strong support is found at $34,000, the correction could potentially reach a 30% dip.
Concerns for Altcoin Market Cap
Looking at the Total3 chart (market cap of all altcoins except bitcoin and ethereum), there is a concerning “M” pattern forming. If the price breaks through the neckline, it could lead to a significant drop in the altcoin market cap, possibly even below the major support at $407 billion.
Bearish or Bullish for Altcoins?
When zooming out to the weekly time frame, the outlook for altcoins remains uncertain. The altcoin market cap has been rejected from a trend line that dates back to 2018. Unless it can surpass this trend line, the future does not look promising for altcoins.
However, there are different ways to draw this trend line, and considering the middle line, a retest of support could indicate a more bullish scenario for altcoins.
Trade and Invest Wisely
The market ultimately determines the fate of cryptocurrencies, so it’s crucial to approach trading and investing with caution. Reduce risk as much as possible and make wise decisions based on the current market conditions.
Hot Take: The Crypto Market in Limbo
The crypto market is currently in a state of uncertainty. Bitcoin’s small rallies are not leading to significant gains, which is causing traders to be cautious. Altcoins are suffering even more and are at risk of a major drop in market cap. On a larger scale, the outlook for altcoins remains uncertain. It’s important to approach trading and investing with caution and to closely monitor market conditions for the best decisions.
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