Altcoin Cap (ALTCAP) Creates Double Bottom Pattern Above Support

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In Brief
  • ALTCAP reached an all-time high on Nov 10.

  • It is following a descending resistance line.

  • There is resistance and support at $970 and $760 billion.

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The altcoin market cap (ALTCAP) has created a bullish pattern just above the $760 Billion support area and could soon initiate an upward movement.

On Nov 10, the total altcoin market cap reached a new all-time high price of $1.31 Trillion. However, it has been moving downwards since. 

ALTCAP has fallen below the previous all-time high resistance area of $970 billion, rendering the previous breakout as a deviation (red circle). The $970 area is now acting as resistance once more, most recently causing a rejection in December.

Currently, ALTCAP is trading just above the $760 billion support, which is both a horizontal support area and the 0.5 Fib retracement support level. Due to the confluence of these factors, it is a very strong support level.

TOTALCAP Decrease
Chart By TradingView

Future movement

Trader @PrinceofElliott tweeted an ALTCAP chart, stating that it is likely to resume its downtrend in the near future towards $400 billion. However, he suggests an upward movement will transpire prior to the decrease.

ALTCAP Count
Source: Twitter

A closer look at the daily chart aligns with this assessment.

ALTCAP has created a double bottom above the $760 billionn support area. The double bottom is considered a bullish pattern, meaning that it often leads to upward movements. 

Furthermore, the pattern has been combined with bullish divergences in both the RSI and MACD (green lines). Such divergences often precede upward movements. The fact that they are transpiring alongside a bullish pattern further supports the possibility that an increase will follow.

A breakout from the descending resistance line in place since Nov 10 would confirm that the upward movement has begun.

In that case, an ALTCAP upward movement towards the $970 billion resistance area would be the most likely scenario.

Daily ALTCAP
Chart By TradingView

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

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.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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