The cryptocurrency market is showing signs of resurgence after breaking out of a two-week correction. The total crypto market capitalization (TOTALCAP) has surpassed significant resistance levels, notably breaking out from a descending wedge that formed since the market’s peak in mid-August. This recent surge has led to increased optimism among investors, and small-cap altcoins are gaining momentum, suggesting the potential for an explosive rally.
Recent data indicates that the TOTALCAP successfully crossed the $3.84 trillion resistance barrier, a key Fibonacci retracement level, marking a critical point in confirming the end of the recent downward trend. Experts point out that if the TOTALCAP can break through the next significant hurdle at $3.96 trillion, there is a strong possibility that doubts about the end of the correction will be alleviated completely.
Technical indicators, including the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD), are nearing levels that may signal a bullish trend. If these indicators successfully surpass their resistance levels, it would reinforce the belief that the correction is indeed over.
From a long-term perspective, the crypto market appears to be nearing the final leg of its upward trajectory that commenced in April. Analysts suggest that TOTALCAP has likely completed its fourth wave of movement and is now poised for a fifth and final wave, potentially targeting a market cap of $4.6 trillion. This interpretation is supported by the fact that the recent price action aligns with historical patterns typically seen during such market phases.
As the overall market shifts positively, attention is turning to altcoins. With Ethereum falling back compared to Bitcoin, smaller cryptocurrencies are beginning to take center stage. The altcoin market cap (ALTCAP) is approaching breakout levels in its own right, aiming to surpass the $1.10 trillion resistance. Analysts expect a successful breakout could propel ALTCAP to new all-time highs, between $1.29 trillion and $1.32 trillion.
Additionally, the surge in small-cap altcoins is particularly noteworthy. The dominance of these smaller cryptocurrencies has recently exceeded the 8% mark, achieving its highest levels since May. A continued upward movement in small-cap dominance could signal a definitive new upward trend in the market, as indicated by concurrent bullish patterns observed in various technical indicators.
Bitcoin’s dominance, however, continues to decline, having lost substantial ground since June. This drop highlights a shift towards altcoin investments, marking the onset of what many analysts are calling “altcoin season.” While Bitcoin’s dominance might edge up in the future, the overall trajectory suggests that the market is leaning toward a broader altcoin rally.
In summary, the signs indicate that the recent crypto correction may be behind us, with potential for significant gains in the upcoming weeks. As experts scrutinize the evolving landscape, the focus remains on small-cap altcoins which may lead the charge in this renewed market rally. As September unfolds, especially with events like the Federal Reserve’s interest rate announcement on September 17, the coming weeks are poised to be critical for the cryptocurrency market.
