TA: Why Bitcoin Rally Could Soon Fade If BTC Fails To Surpass $24K

Spread the love

Bitcoin is trading a few thousand above its former peak at $20,000, but the spark of a new altcoin season hasn’t yet arrived in the crypto industry. One reason for the delay of the bullish advance is because the total altcoin market cap has gotten itself stuck in the clouds.

But as soon as the clouds and related turbulence are cleared, there won’t be any resistance left in the atmosphere preventing the rest of the asset class from catching up with Bitcoin and taking off toward the moon.

Bitcoin FOMO Returns To Crypto Market, But Top Alts Unaffected Thus Far

Bitcoin was the first-ever cryptocurrency to be created, and anything that came after the fact that isn’t a direct fork of the crypto asset is considered an altcoin.

Even Ethereum or XRP that command a large share of the overall crypto market cap of their own, are still categorized under the altcoin class.

When Bitcoin first exploded into the mainstream in 2017, the FOMO and related flood of capital pouring into the crypto market in search of the next big thing, resulted in what to this day is referred to as “altcoin season.”


During this phase, Ethereum ballooned to $1,400, XRP surged to over $3.58 per token, and the rest of the altcoin space performed just as well – if not better.

With Bitcoin now trading well above its all-time high once again, crypto investing vets have anticipated another altcoin season of similar proportions, but it has yet to happen. And that’s because the total altcoin market cap can’t get its head out of the clouds.

RECOMMENDED READ:  Bitcoin's second-best week in history and five things to watch in Bitcoin this week.

total 2 altcoin crypto market cap alt season cloud

Altcoins get stuck in the Ichimoku cloud, but a bullish crossover has formed | Source: CRYPTOCAP-TOTAL2 on TradingView.com

Why Another Altcoin Season Or Bear Market Will Be Decided This Month

According to the total crypto market cap sans Bitcoin, looking only at the remaining over $200 billion in capital that altcoins bring to the table, price action on monthly timeframes was rejected at Ichimoku cloud resistance.

The Ichimoku cloud, also called the Kumo, can act as support or resistance, and the size of each cloud indicates how turbulent the price action has been, similar to how Bollinger Bands widen with volatility.

And while running headfirst into cloud resistance isn’t a great sign for altcoins, thus far, the December monthly candle is holding above the bottom support of the cloud. Bitcoin dominance also shows a very important December close, coinciding with the total altcoin cap.

The large November candle pushed altcoins into the cloud, more importantly, triggered a bullish crossover of the indicator’s baseline and conversion line, also called the Tenkan-Sen and Kijun-Sen.

A bearish crossover is also depicted on the chart above to demonstrate the significance of the trend change that takes place alongside the crossover if confirmed.

The Ichimoku looks at past, current, and future price action, and the red cloud lasting another year ahead could suggest an extended phase of bearish price action.

total 2 altcoin crypto market cap moon

Here's why crypto investors are salivating over alt season | Source: CRYPTOCAP-TOTAL2 on TradingView.com

However, if the total altcoin market cap can break above the cloud, the chart directly above acts as an example of what a proper altcoin season can bring for investor returns.

RECOMMENDED READ:  Germany Takes Over FATF Presidency With New Guidance to Help Countries Apply Crypto Standards

With negative sentiment surrounding many of these assets and institutional focus on Bitcoin alone, there’s no telling if altcoins will ever revisit their former all-time highs.

So before any chance of moon, altcoin holders must wish upon a star that the total crypto market cap sans Bitcoin can finally get above the clouds.

 457 Interactions,  2 today

Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more

Fidelity’s Tom Jessop on why Crypto has reached a “tipping point.”

The crypto market has gained traction as a result of low interest rates and fiscal stimulus, according to a Fidelity Read more

How arrests for attempting to obtain a hitman and a nuclear bomb demonstrate that the dark web is not always anonymous.

Paying with cryptocurrency does not guarantee your safety. Most of the criticisms levelled at cryptocurrencies is that its difficult-to-trace existence Read more

Bitcoin, BTT, Dogecoin Price Movement Analysis for 7th April, 2021

Bitcoin was expected to remain above the $55,800-support, a level that coincided with its 200-SMA. BitTorrent Token was projected to Read more

The cryptocurrency market cap has surpassed $2 trillion, making it as valuable as Apple.

For the first time, the total market value of all cryptocurrencies exceeds $2 trillion. According to Goingecko numbers, the total Read more

RECOMMENDED READ:  Meet Stefan Thomas, he has two password tries to lose £180 million worth of Bitcoin
Why crypto analyst Ben Armstrong says, ‘He Very Confident Bitcoin Will Reach $300K This Year.’

Recently, blockchain expert and influencer Ben Armstrong mentioned Bitcoin in a video posted to his highly popular YouTube channel “BitBoy Read more

Binance Coin, Dogecoin, SushiSwap Price Movement Analysis for 4th April, 2021

Binance Coin predicted that fresher record thresholds will be set in the coming days due to solid technicals. Following a Read more

Tron Price Movement Analysis for 4th April, 2021

In the cryptocurrency industry, excessive uncertainty has had a long-term effect on the price of the digital commodity. This uncertainty Read more

Ethereum Price Movement Analysis for 4th April, 2021

Ethereum, the second-largest cryptocurrency, has entered a volatile zone, which could drive the digital asset's price even higher. In the Read more

Chainlink, DigiByte, Enjin Coin Price Movement Analysis for 4th April, 2021

Bitcoin faced some selling pressure just above the $59k mark, leading it to slip to $56,600. The majority of the Read more

Bitcoin fell by more than 4%, causing many other cryptocurrencies to plummet drastically.

The world's most expensive cryptocurrency fell 4.1 percent, bringing several other coins down with it, sending the economy into the Read more

Litecoin Price Movement Analysis for 3rd April, 2021

For the last few days, the cryptocurrency industry has been playing chase with the bulls and bears. The economy has Read more

Leave a Reply

Contact Us