Altcoins set for big move
After a fairly extensive correction, the market cap of altcoins is fast recovering. As bitcoin moves back towards its recent all-time high, the altcoins are jockeying for position in order to make their own breakouts.
Altcoin market cap in bull flag
Source: Coingecko/TradingView
As bitcoin works its way back towards the top of its bull flag, the altcoins are doing a similar thing, as the market cap of all cryptocurrencies excluding $BTC (Total 2) traces a path to the top of its own bull flag. A measured move for the bull flag, although this is quite subjective, could take the combined market cap of the altcoins to $1.68 trillion, from its current $1 trillion level.
Cup and handle pattern even more bullish
Source: Coingecko/TradingView
Zooming right out into the weekly time frame, things look even more bullish for the altcoins. A cup and handle pattern is forming, with the current correction phase helping to form the handle. Should the altcoin market cap manage to break out of the bull flag, and continue to the resistance at $1.26 trillion - a confirmed break there could see the cup and handle pattern play out. A measured move would take the altcoins to a combined value of $2.1 trillion, which is around double what it is now.
Altcoin market cap targets
Finally, if the $2.1 trillion market cap could be assumed to be the conservative top for the altcoins, looking at the fibonacci extensions, the next target at the 1.618 fibonacci level would be $2.5 trillion, the 2.618 would be $3.8 trillion, and the 3.618 would be a nice round $5 trillion.
All this said, markets certainly go down as well as go up. This current altcoin correction measures around 29%. There are likely to be more of these on the way to higher levels, and also the top cannot be predicted with any kind of certainty. All precautions should be taken if trading these markets as volatility is likely to be high.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
