Daily Crypto News

Altcoin Market Cap (ALTCAP) Bounces After Reaching Crucial Fib Ratio

The Altcoin Market Cap (ALTCAP) has bounced at a crucial Fib level after decreasing by 69% since its all-time high.

ALTCAP has been falling since reaching an all-time high price of $1.70 trillion in Nov 2021. The decrease was preceded by a bearish divergence in the weekly RSI (green), which has now fallen to oversold territory.

The downward movement continued until a low of $427 billion was reached on June 18. The low was made very close to the 0.382 Fib retracement support level at $395 billion, and inside the previous all-time high support of $445 billion. 

So, it is possible to say that the main support area is between $395 and $445 billion. Measuring from the all-time high, ALTCAP has so far fallen by 69%.

Current resistance

The daily chart shows that ALTCAP has been decreasing underneath a descending resistance line since the beginning of April. 

Currently, the resistance line is at $600 billion, coinciding with a horizontal resistance area. 

The daily RSI is also increasing and has moved outside its oversold territory. A breakout from the line/area and an RSI movement above 50 would be required in order for the trend to be considered bullish. 

If this occurs, the next resistance area would be at $750 billion.

Wave count analysis

Cryptocurrency trader @Altstreetbet tweeted a chart of ALTCAP, stating that the entire downward movement will be complete after another final drop. 

Since the aforementioned all-time high, it is possible that ALTCAP has completed an A-B-C corrective structure (black). The sub-wave count is given in yellow, showing a completed five wave downward movement.

The two main reasons for this are the fact that waves A:C have so far had a 1:1 ratio, and that the movement is contained perfectly inside a descending parallel channel. 

An increase above the middle of the channel at $600 billion, which also coincides with the previously outlined resistance line/area would be a strong sign that the correction is complete, and a new upward movement has begun. 

For Be[in]Crypto’s latest bitcoin (BTC) analysis, click here


All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Read More: Altcoin Market Cap (ALTCAP) Bounces After Reaching Crucial Fib Ratio

Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.