Flashes of a big buy signal on Altcoin markets indicate the next bull run
All attention is focused on Bitcoin, which led the markets last month, rising 30%. However, altcoins, which often lag their big brother Bitcoin, are also showing strength in patterns that mirror previous bull market cycles.
The total crypto market capitalization decreased by 2.3% on the day. However, it generated more than $300 billion in revenue last month.
Altcoin market momentum
In the year On November 17th, analyst ‘CryptoCon' observed that altcoins were gaining momentum despite major moves by Bitcoin. And they said so.
“This is clearly seen in both the altcoin strength and the crossing of the 50-week SMA (simple moving average) barrier.”
In earlier market cycles such as 2016 and 2017, strong upward price action occurred after this technical indicator was crossed.
However, the cross has come a little earlier than this cycle, as it is normally expected next year.
The analyst added that “like 2016 – 2017 for both Bitcoin and Altcoins and less ‘2020' absurd price action is expected”.
However, the analyst pointed out that things are still very early for altcoins as ‘Jel' has yet to break out of the accumulation range of the overall altcoin market cap.
Fellow analyst ‘The Beard' highlighted the “Supertrend Indicator” in a Nov 17 post on Altcoins. The indicator has reversed the buy signal for altcoins that it did before the previous bull markets.
Crypto influencer and Cardano advocate Dan Gambardello offers another bright angle for altcoins:
“Do Blackrock altcoins know Bitcoin's dominance is waning and have they officially acknowledged it on the application?”
Bitcoin is the market leader that makes the first move when cycles turn. The rest usually follows Ethereum and other high-cap altcoins before the altcoin market moves.
Read more: 7 must-have cryptocurrencies for your portfolio before the next bull run
Friday retreat
By all accounts, it's still early days for altcoins, but things are starting to pick up.
However, total capitalization fell to $1.43 trillion in the last 24 hours as the cooling period began.
Not all altcoins are in the red, however, with Dogecoin (DOGE) bucking the trend with a 5.4% gain. Avalanche (AVAX) was on fire today, rising 18% to $24, while Caspian (KAS) did 20% on the day.
The biggest altcoin losers were Solana (9.6%), Chainlink (5%) and Polygon (MATIC), down 4.7% on the day.
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