- Recent surge in altcoin market aligns with anticipated developments.
- Bitcoin rebound may trigger test of altcoin market’s support band.
- Upward movement of TOTAL3 above support band not confirmation of altcoin season.
Esteemed cryptocurrency market analyst Benjamin Cowen asserts that the recent surge in the altcoin market aligns with previously anticipated developments. Nevertheless, if this trend persists, characterized by consecutive weekly closures and escalating valuations, it may deviate from the projected trajectory.
In a recently shared video, Cowen referred to his earlier forecast stating that a potential rebound of Bitcoin from its bull market support band might trigger a test of the altcoin market’s (TOTAL3) bull market support band. Cowen attributes this market phenomenon primarily to seasonality, highlighting its significant role in Bitcoin’s market development.
Cowen observed that the market had validated his previous forecast, as Bitcoin has successfully rebounded from its support level; TOTAL3 has undergone a retest and has even surpassed its support level. He further noted that this pattern exhibited by TOTAL3 aligns with its historical behavior in pre-halving years. A comparable situation unfolded in 2019, when TOTAL3 trended below the support band of the bull market until January 2020, preceding the bullish rally influenced by the halving event.
According to Cowen, the recent upward movement of TOTAL3 above the support band should not be interpreted as a confirmation of an altcoin season in the crypto market. Cowen emphasizes that to confirm a bullish breakout, it is crucial to observe a consecutive weekly close above the support band. Without this follow-through, the break above the support band could be deemed a false move, similar to previous instances.
TOTAL3 represents the aggregate market value of all cryptocurrencies, excluding Bitcoin and Ethereum. Within the crypto community, TOTAL3 serves as a crucial metric for traders and analysts to comprehensively assess market dynamics and investor sentiments about alternative digital assets beyond the dominant duo of Bitcoin and Ethereum. This metric aids in forecasting the onset of the altcoin season and the overall progress of the broader crypto market.
According to TradingView data, TOTAL3 experienced a significant surge from $331.96 billion to $378.42 billion following the court’s favorable ruling in Ripple’s legal battle against the Security and Exchange Commission (SEC). This impressive rally yielded a remarkable 14% increase within less than 24 hours. However, the value has slightly declined to $367.04 billion at the time of this analysis.
