If Alts are going to bounce, they'd better do it now
See that yellow line there? That's the long term trendline which dates back to 2015. It's kind of important. If we want to see alts remaining bullish, we really want to see that line hold. Of course, there's the fakeout from a couple weeks ago, but if it breaks down again, I really don't think there would be two fakeouts in a row. So if alts are going to bounce, they'd better do it now.
If it does bounce, that would look great and things will really start to look good once we get past 76 billion and if it gets past 82 billion, it might be safe to say alt season is here.
But if it breaks the trendline, where to next? Well, there's two areas of support that it could find. The 50d Moving Average, which served as resistance a few weeks back, and the 61 Billion level, which was important resistance back in the beginning of the year that hasn't really been tested as support more than once. If those areas fall, alts are basically done for.
Which is more likely? Well, I have to admit I think down is a lot more likely here. I noticed a pretty prominent bearish divergence between the price and 4h MACD and RSI. We'll see what happens very soon, though. This is make-or-break time.
If it does bounce, that would look great and things will really start to look good once we get past 76 billion and if it gets past 82 billion, it might be safe to say alt season is here.
But if it breaks the trendline, where to next? Well, there's two areas of support that it could find. The 50d Moving Average, which served as resistance a few weeks back, and the 61 Billion level, which was important resistance back in the beginning of the year that hasn't really been tested as support more than once. If those areas fall, alts are basically done for.
Which is more likely? Well, I have to admit I think down is a lot more likely here. I noticed a pretty prominent bearish divergence between the price and 4h MACD and RSI. We'll see what happens very soon, though. This is make-or-break time.
Comment:
The altcoin market gave its best shot to stay above the trendline, but it was just delaying the inevitable. Alts have now safely broken below the trendline, and even retested it as resistance. This doesn't mean it's over for alts, though, it just means likely it's gonna be a lot longer until we see alt season.