The cryptocurrency market has recently showcased one of its most robust weekly closes, igniting both enthusiasm and speculation about future movements. The total market capitalization of cryptocurrencies (TOTALCAP) achieved an impressive weekly close at $3.98 trillion last week, a notable milestone despite falling short of the all-time high of $4.17 trillion recorded in August.
While the market experienced a pullback following this achievement, technical indicators suggest that the overall bullish trend remains intact. The market successfully rebounded off the $3.60 trillion horizontal support area, which is viewed as a constructive sign. This bounce also confirmed the support trend line of an ascending parallel channel, creating a solid foundation for TOTALCAP.
According to analysts, the market appears to be in the fifth and final stage of its upward trajectory, which could potentially culminate in a new all-time high of around $4.5 trillion. Thus, despite the recent decline, the long-term outlook for cryptocurrencies remains optimistic.
In an interesting twist, Bitcoin’s Dominance Rate (BTCD) surged during the market’s downturn. After hitting a low of 57.17% on September 13, Bitcoin’s dominance has experienced a noticeable drop of 13% since June. However, this downturn may be nearing its conclusion as the BTCD has completed a corrective structure known as an A-B-C pattern, with both wave A and wave C achieving equal length. Indications from the sub-wave count suggest a completed five-wave decline, and analysts foresee a possible recovery toward the 60.55% resistance level.
On the altcoin front, the altcoin market cap (ALTCAP) reached a record high of $1.16 trillion on September 13 but has since faced a decrease. Much like the total market capitalization, ALTCAP is currently retesting the $1.10 trillion horizontal area to ascertain its status as support. Successfully maintaining this level is deemed crucial for confirming a continuing bullish trend. Analysts believe that the ALTCAP is poised for its fifth and final wave, potentially leading to a new all-time high of $1.32 trillion if it holds above the $1.10 trillion mark.
In summary, while the recent dip may raise concerns among investors, the technical frameworks across Bitcoin, altcoins, and total market capitalization suggest a persistent bullish sentiment. Should the key support levels hold, both TOTALCAP and ALTCAP are well-positioned for potential new highs in the near future.
