The altcoin market dominance has consistently been increasing since the beginning of September. If it breaks out above the current resistance area, it is likely that many could continue outperforming Bitcoin.
As the Bitcoin price decreased by 20% last week alone, the panic and fear in the markets have been growing. What has been interesting to watch since the beginning of September, is the fact that altcoins have been constantly outperforming Bitcoin — which is unusual in times when BTC tanks.
However, the USD value of the total altcoin market cap does not look as great. While it has reached a significant support level which could initiate a reversal, there is no confirmation of an upward trend just yet.
The altcoins started to take off the moment $BTC found support from his first parabolic move.
Altcoins have already been doing well, but looking eager to outperform $BTC in the coming period.
— Crypto Michaël (@CryptoMichNL) November 25, 2019
He stated that he is ‘enthusiastic’ about the future prospects of altcoins, especially since several of them have been performing surprisingly well.
Long-Term Altcoin Support
Altcoin dominance found support at 30% in September, initiating the current upward move.
It’s worth noting that the RSI briefly reached oversold values close to 20. A low of 19, set at the beginning of September, was the lowest value ever recorded.
Looking at the daily chart, we can see a resistance area at 34%, which the price has failed to break above on two occasions.
Additionally, while the price is not following an ascending trendline, the 50 and 100-day moving averages (MA) have made a bullish cross. The price is currently trading above both of these lines, having possibly found support above the 50-day MA.
If it continues to hold this level, it will likely break out above the resistance area. Therefore, it looks as if altcoins could outperform BTC during the upcoming months.
Total Market Cap
The total market cap has decreased back to the 0.786 fib level at 65 billion. This is the final fib support before the price retraces fully.
While the price has made a bullish hammer, there are no other signs indicating a reversal. Therefore, while a reversal is possible, it cannot be confirmed by the current market movements.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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Source: Be In Crypto