Critical Bitcoin indicator suggests ‘shift in sentiment’; Is it finally time for altcoins to shine?
The post Critical Bitcoin indicator suggests ‘shift in sentiment’; Is it finally time for altcoins to shine? appeared first on Coinpedia Fintech News
Analyst Eric Krown Crypto recently said that he is expecting possible upward trends in some altcoins due to technical indicators and market sentiment changes. The analyst also said to keep an eye on weaker altcoins that might struggle to keep going up. He said that today’s topic is all about altcoins—what they’re currently up to and when we might expect some action from them. There are a few signals starting to appear, which are likely to trigger within the next two weeks as this month wraps up. The analyst looked at total 3, total 2, and Bitcoin dominance.
Bitcoin Dominance Quarterly RSI Setup: A critical indicator, the quarterly RSI for Bitcoin dominance is currently showing signs of hidden bearish divergence. This divergence occurs when the RSI indicates higher highs while the corresponding price action shows lower highs, particularly evident around the 50% retracement level.
This setup suggests a potential stall in Bitcoin’s dominance over the broader crypto market, especially important if monthly closures by month-end fall around or below the 55.35% mark. Despite this, it’s essential to note that not all altcoins may benefit equally from any downturn in Bitcoin dominance. Stronger projects are expected to maintain resilience and potentially outpace weaker counterparts.
Monthly Momentum Shifts and Market Sentiment
On the monthly time frame, Bitcoin dominance Stochastic Momentum is poised to turn downwards if closures drop below approximately 55.18%. This shift could indicate a broader sentiment change among investors, possibly triggering adjustments in portfolio allocations towards more robust altcoins.
Total 3: Consolidation and Potential Upside
Excluding Bitcoin and Ethereum, Total 3 reflects the market cap of all other cryptocurrencies. Presently, Total 3 shows a consolidative pattern, suggesting a period of price stabilization. The crucial support level to watch is around 500 billion, maintaining above which could pave the way for renewed upside momentum. Should Total3 manage to reclaim recent highs seen in late May, around 784 billion, it could signify a bullish resurgence and potentially set new cycle highs.
Looking at Total 3 & Total 2 Stochastic Momentum, he pointed out that while monthly momentum for Total 3 was turning down, similar patterns in the past have led to strong upward movements. Total 2 showed a similar pattern, suggesting strong momentum might be ahead.