The altcoin market has been depressed for eleven weeks now. Some may be thinking that it’s over, that interest in altcoins has switched to Bitcoin, and that the gains of past cycles will never again be matched. However, a reset is taking place. Could the next leg to the upside be a big one? Top of previous bull flag confirmed Source: TradingView Total3 is the chart of the combined market capitalisation of all cryptocurrencies, excluding $BTC and $ETH. It is showing that a long price wick down almost tagged the 0.618 Fibonacci, but definitely succeeded in confirming the top of the bull flag that stretched from March to September 2024. Could it be that the recent price action is also forming a bull flag? Stochastic RSI is signalling the arrival of major upside price momentum Looking at the bottom of the chart, the Stochastic RSI is approaching the bottom, and is already in the oversold area. If one looks at charts across most of the crypto market, this bottoming of the indicators on the weekly Stochastic RSI is generally also currently taking place. Because the weekly is more of a long-term time frame it has a lot more relevance for the big macro moves. These cross-ups of the indicators only take place around twice a year, so buying when the indicators are at the bottom is not a bad strategy. Yes, the indicators could flatline and chop around at the bottom for quite some time. However, even if this happened, it would then give the 2-week Stochastic RSI more time to get to the bottom. The 2-week plus the weekly Stochastic RSIs would have the potential to supply a massive amount of upside price momentum. $ETH tags major support and heads into major resistance Source: TradingView Given that it is the biggest cryptocurrency outside of $BTC, $ETH is going to be one crypto that makes a major impact on the overall market cap of the altcoins. Just as was the case in the Total3 chart, a huge price wick down was able to touch and reconfirm major support. The $ETH price has now entered the band of resistance stretching from $2,750 up to $3,000. With its Stochastic RSI, one can see that the blue indicator line is already angled up, and a crossover could be confirmed at the end of this week. Breaking through the resistance, and also the descending trendline, could help the $ETH bulls towards a higher high, with the prize of a new all-time high at $4,865 a definite possibility as a longer term target. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
