Altcoin Market Capitalization on the Rise
The altcoin market capitalization is consolidating and showing signs of a potential breakout. For the past month, there has been a 35% price increase, pushing the market cap to a crucial resistance area at $657 billion that has existed since mid-2022.
Triple bottom support at $494 billion has created a solid structure for a potential bull market. If the altcoin market capitalization continues to rise, it will break out of the long-term resistance area and potentially confirm the start of a new bull market.
A Bullish Breakout After A Short Correction
In the daily interval analysis, altcoin market capitalization reached resistance at $657 billion, suggesting a short-term consolidation and possible correction. If the correction is shallow, a retest of the previous resistance area at $608 billion can be expected.
The daily RSI is already in overbought territory above 70, and there are signs of an increase in trading volume. This trend may soon become visible in the weekly trading volume as well.
Altcoin Season: The Money Flow Cycle
Renowned crypto analyst Stockmoney Lizards believes that altcoin season is around the corner, citing historical trends after Bitcoin’s previous halving. Another analyst, Crypto Clearly, highlights the standard money flow during a crypto bull market, beginning with Bitcoin and progressing to smaller altcoins.
Crypto Bitcoin Chris adds that project freshness plays a big role in altcoin season progression, with innovative technologies leading at first followed by less popular altcoins with high quality and value against Bitcoin. The end of the altcoin season is marked by the growth of old projects.
Hot Take: The Potential for a New Altcoin Season
The altcoin market capitalization is showing strong signs of potential growth and may ignite a new altcoin season. With key technical indicators pointing towards a bullish breakout and historical patterns suggesting an upcoming cycle, now might be an opportune time to consider altcoins for your portfolio before the next bull run.
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