The market capitalization of altcoins has been engulfed in a bear market for almost two years. Additionally, while Bitcoin has enjoyed a resurgence in 2019, recouping nearly 50% of the value lost since January 2018, the retracement has been much weaker for altcoins.
However, the overall sentiment has been increasingly positive as of late. Many cryptocurrency enthusiasts have been calling for the beginning of “altseason,” suggesting future price increases. If previous movements are to serve as a gauge, we may soon see considerable increases in the price of various alternate coins.
Let’s go to the charts and see if such a move is likely.
The current alternate coin market cap (ALTCAP) level is above significant support. Additionally, it has gained some momentum and possibly created a bullish pattern.
2018 vs. 2019
The ALTCAP has been in an upward trend since December 2018, increasing by a significant 80%.
However, relative to the 2018 high of $560 billion, the current cap of $80 billion marks a loss of 85%.
This means that a return to the high would mark an increase of roughly 8x from current levels.
Looking more closely at price movement, we can see a support area at the current level of $77 billion.
Furthermore, looking at a slightly long time-frame reveals even stronger support at $67 billion, which also corresponds with the 0.786 fib level.
The current price is at a very suitable point for the initiation of a reversal, indicating that the upward move that began in December 2018 will continue.
A Closer Look
On August 29 and September 6, the price created a double bottom.
The double bottom is considered a bullish pattern, indicating that a reversal could begin.
Additionally, it looks as if the price is gaining momentum.
It has done so by moving above its 15-day moving average (MA).
Furthermore, it is approaching the 30-day MA.
It has not traded above it since July
If the price level were to move above it, it could indicate that a new upward move has begun and further increases are in store.
While the alternate coin market cap has been decreasing for almost two years, it is currently at very significant support levels.
Additionally, there is very strong support slightly below the current levels, reducing the risk of a significant, rapid decrease without experiencing any retracement.
Do you think it is worth investing in altcoins at current prices? Let us know in the comments below. While you’re at it take a look at our guide on the best cryptocurrency exchanges for trading Bitcoins.
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 are courtesy of Cointrader.pro, Shutterstock.
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