Bitcoin
Bitcoin Critical Indicator Suggests ‘Sentiment Change’; Is it finally time for altcoins to shine?
Eric Krown Crypto Analyst recently said it expects possible bullish trends in some altcoins due to technical indicators and changes in market sentiment. The analyst also said to keep an eye on weaker altcoins that may struggle to continue rising. He said today’s topic is about altcoins – what they are currently doing and when we can expect some action from them. Some signals are starting to appear that will likely be triggered in the next two weeks towards the end of this month. The analyst analyzed total 3, total 2 and Bitcoin dominance.
Bitcoin Dominance Quarterly RSI Setup: A critical indicator, the quarterly RSI for Bitcoin dominance is currently showing signs of hidden bearish divergence. This divergence occurs when the RSI indicates higher highs while the corresponding price action shows lower highs, particularly evident around the 50% retracement level.
This setup suggests potential stagnation in Bitcoin’s dominance over the broader crypto market, especially important if month-end monthly closes fall around or below the 55.35% mark. Despite this, it is essential to note that not all altcoins may benefit equally from any slowdown in Bitcoin’s dominance. Stronger projects are expected to maintain resilience and potentially outperform weaker counterparts.
Monthly Market Momentum and Sentiment Changes
On the monthly time frame, the stochastic momentum of Bitcoin dominance is poised to decline if closes fall below approximately 55.18%. This shift could indicate a broader shift in sentiment among investors, possibly triggering adjustments in portfolio allocations toward more robust altcoins.
Total 3: Consolidation and potential increase
Excluding Bitcoin and Ethereum, Total 3 reflects the market cap of all other cryptocurrencies. Currently, Total 3 presents a consolidative pattern, suggesting a period of price stabilization. The crucial support level to watch is around 500 billion, remaining above which could pave the way for renewed upward momentum. If Total3 manages to recover the recent highs seen at the end of May, around 784 billion, it could signal a bullish resurgence and potentially establish new cycle highs.
Looking at the Stochastic Momentum of Total 3 and Total 2, he highlighted that although Total 3’s monthly momentum was declining, similar patterns in the past had led to strong upward movements. Total 2 showed a similar pattern, suggesting that strong momentum could be ahead.