The cryptocurrency market has been increasing since the beginning of 2019. However, this increase has not been equally divided between Bitcoin and altcoins. The Bitcoin price has increased at a faster rate, causing the altcoin market cap dominance to decrease.
However, that has recently begun to change. Numerous altcoins, mostly Chinese based, have posted increased by up to 40%, likely resulting from an endorsement of blockchain technology by the Chinese government.
The altcoin market cap has been showing signs of life and has initiated a gradual upward move. The October 26 decrease looks more like a short-term correction than the beginning of a reversal.
Crypto analyst @paddystash stated that the altcoin market cap dominance has been gradually increasing after the sharp downward move of October 25-26, when Bitcoin enjoyed one of its biggest surges yet.
Altcoin dominance has continued to climb back upwards since the big $Btc spike from $7.4 to over $10k last week. $ETH just jumped from $181 to a high of $188 just a few hours ago. ALts all look ready to move again. Lets see Big alts and Chinese alts blow up and bring the rest up pic.twitter.com/QIIcZvh32D
— Paddy Stash (@paddystash) November 4, 2019
He mentioned Ethereum’s short-term increase and the previous increases generated by Chinese coins.
How long will the altcoin market cap continue to increase? Let’s take a closer look.
Altcoin dominance has been decreasing since the beginning of 2018 when it was trading near 65%.
The decrease briefly stopped at 30%, and the price has been increasing since.
30% represents a minor support area, while there is a major support area at 23%.
Additionally, the market cap has made three higher lows, in September, October and November respectively, combined with a bullish cross of the 10- and 20-day moving averages (MA).
The price is trading above both, heading for the minor resistance area at 35%.
It looks as if the price will eventually get there and possibly move higher.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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