#ALTCOINS htf overview

Altcoins have been on a downtrend since March 2024. The key question is whether this is a correction before a bullish continuation, or the beginning of a new bearish trend.

We can see how the altcoins market cap index is forming lower highs and lower lows (chart 1). It is now testing a major support zone (blue zone). If this support holds, we should see a bounce soon. However, it’s important to have bullish confirmations for a trend reversal. The first one would be a clean break of the trendline that connects the lower highs. The second confirmation would be a reclaim of the dark zone, around 240-250B.

In chart 2, we can see how there was a similar correction in May-July 2021. After that, the market went on to new highs. That correction was shorter in time but more aggressive in price, shaking out most investors/traders. We’re currently seeing something similar. This correction has been hard for many, exhausting their hopes.

Lastly, the altcoin dominance (OTHERS.D, chart 3) is showing similar patterns to when the real altseason started in late December 2020.

Personally, I’m still adding exposure to altcoins that look promising. Only spot, no leverage yet until we see bullish confirmations. That’s the plan for now. If the main support levels don’t hold and the market doesn’t show strength in the coming days, I’ll start reducing exposure.

Let’s see what awaits us.

The market is reacting positively to today's employment data in the US.