Short-term and long-term, the ALTCAP is expected to increase. While the short-term BTCD is negative, the long-term trend is not yet clear.
Altcoin cap begins upward movement as Altcoin season hopes recover
The Altcoin Market Cap daily timeframe technical analysis gives a bullish result. ALTCAP is up since it bounced at the horizontal support level of $500 billion on June 15, (green icon).
It broke free from a resistance line descending on June 30. This was an indication that the previous correction was over. Then, ALTCAP came back to confirm the line’s support on 7 July (green icon), before accelerating further.
The daily RSI validates the breakout and encourages its continuation. The RSI is used by traders to evaluate market conditions. It can be used to determine whether a market has become overbought, oversold or to decide if it’s time to sell or accumulate an asset.
The bulls have the advantage if the RSI is above 50. If it is below 50 then the opposite is true. The indicator is moving upwards and above 50, which are both signs of a positive trend.
ALTCAP currently trades above the 0.618 retracement level resistance at $600 billion. Fibonacci levels are based on the principle that, after a significant price movement in one way, it will retrace and return to an earlier price level.
This is a bullish sign, as the 0.618 level of Fib often acts as a local top when the breakout is merely a relief rally.
If the trend continues, ALTCAP could reach a new annual high of $700 Billion. If the ALTCAP closes below the 0.618 level of Fib, the next support is $540 billion.
After rejection, Bitcoin Dominance (BTCD), Weakens
At the beginning of the month, the Bitcoin dominance rate surpassed the previous 48% level. It then reached a new annual high of 52.15 percent at the end the month.
BTCD, however, was rejected at the 0.382 retracement level resistance of 52.15%. The process is underway to create a large weekly bearish candlestick.
If the decline continues, BTCD could fall back to the area of 48% again. Now, the area is expected to support.
The reaction to the trend will determine its direction. If BTCD bounces back, it could resume its upward trend up to 58%.
If it fails, this will indicate that the previous break was not valid and new lows are likely to follow.
Even though this short-term forecast is bearish, closing above the annual high of 52.15 % will still mean that the trend remains bullish. The BTCD would likely increase immediately to 58% in this case.
