Total3, the total market capitalization of all altcoins excluding Bitcoin (BTC) and Ethereum (ETH), has risen significantly since November, along with Bitcoin. However, we are currently in an uncertain phase where altcoins are bleeding. This raises the question: is this a great opportunity to get in now or is it better to wait a little longer?

De bullmarket support band

Let’s bring in the bull market support band to gain more insight. The bull market support band is an important technical level that often acts as strong support during bull markets. Historically, when the price nears the bull market support band around this high and time in the cycle, it often proves to be a great opportunity to enter.

Examples from the past

In a previous cycle, we saw price testing the bull market support band around this time in the cycle. The test was successful, leading to a significant price increase. This pattern often repeats itself in bull markets and offers investors a good opportunity to get in.

Bullish divergence on the weekly

In addition to the test of the bull market support band, the price also shows a huge bullish divergence on the weekly chart. A bullish divergence occurs when price makes lower lows while an indicator such as the RSI (Relative Strength Index) makes higher lows. This indicates underlying purchasing power and possible upward movement.

Influence of economic data

Positive economic data can serve as (potentially) the catalyst for the bounce from the bull market support band. With major economic reports and announcements looming, it is essential to monitor these developments closely. Good economic data can restore confidence in the market and support a positive price trend.

Conclusion

Although the current market phase is uncertain and altcoins are bleeding, several signals indicate that this could be a great opportunity to enter. The historic test of the bull market support band, the bullish divergence on the weekly chart, and the potential positive influence of economic data suggest that the market may be poised for another upward move.

It is important to keep an eye on these signals and act strategically. If the price successfully tests the bull market support band and we see positive economic data, this could be the start of a new phase of growth in the altcoin market.

Disclaimer: The analyzes above are based on technical patterns and trends in the crypto market. It is critical to emphasize that this information is not intended as financial advice. Cryptocurrency investments inherently involve risk and are subject to volatility. Before making investment decisions, it is recommended to do your own research, seek financial advice and only invest what you can afford to lose.

Source: https://cryptobenelux.com/2024/06/11/altcoin-analyse-nu-altcoins-inslaan-of-nog-even-wachten/



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