Altcoins
Critical Bitcoin Indicator Suggests ‘Sentiment Shift’; Is it finally time for altcoins to shine?
Analyst Eric Krown Crypto recently stated that it expects possible upward trends in certain altcoins due to technical indicators and changes in market sentiment. The analyst also said to keep an eye on weaker altcoins that may struggle to continue rising. He said today’s topic is all about altcoins: what they are currently doing and when we might expect action from them. A few signals are starting to appear, which should be triggered over the next two weeks, at the end of this month. 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 in the broader crypto market, particularly significant if monthly closes at the end of the month fall around or below the 55.35% mark. Despite this, it is essential to note that not all altcoins can benefit equally from a slowdown in Bitcoin dominance. Stronger projects are expected to maintain their resilience and potentially outperform their weaker counterparts.
Monthly Dynamic Changes and Market Sentiment
On the monthly time frame, Bitcoin dominance Stochastic Momentum is poised to decline if the closes fall below around 55.18%. This shift could indicate a broader shift in sentiment among investors, possibly triggering adjustments in portfolio allocations toward more robust altcoins.
Total 3: Consolidation and upside potential
Excluding Bitcoin and Ethereum, Total 3 reflects the market capitalization of all other cryptocurrencies. Currently, Total 3 is showing a consolidation trend, suggesting a period of price stabilization. The crucial support level to watch is around 500 billion, a hold above that could pave the way for further bullish momentum. If Total3 manages to return to the recent highs observed at the end of May, around 784 billion, this could mean a bullish resurgence and potentially establish new cycle highs.
Looking at the stochastic dynamics of Total 3 and Total 2, he highlighted that even though the monthly momentum of Total 3 was declining, similar trends in the past led to strong upward movements. Total 2 showed a similar trend, suggesting strong momentum could be ahead.