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Altcoin Market Cap Bounces After Reaching Crucial Fib Ratio

2 mins
Updated by Geraint Price
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In Brief

  • ALTCAP is trading above support at $395 to $445 billion.
  • The weekly RSI has fallen to a new all-time low.
  • ALTCAP is trading inside a descending parallel channel.
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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. 

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona 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. (I do not have a discord and will not contact you first there. Beware of scammers)