Reversal and Rally Continuation
|Overview:
My previous article on Market Cycles, and Altcoin Market Cap, published on 10/30 highlighted several cascading reversal formations on the AltcoinCap, and concluded that a rally was incoming.
Since then the Altcoin Market Cap has complied gaining some 14% in Value over the course of 9 days.
I’ll be highlighting the formations, support levels, and overhead resistances. As they provide key levels for monitoring and trading the current Altcoin rally.
Formations:
Below are the reversal formations currently present on the Altcoin Market Cap. Along with their significance, potential targets, the and expected impact on large cap Altcoins
Falling Wedge, represented by the greed trend lines, was the first to become become evident. The Falling wedge scenario still holds, as the AltcoinCap retested the wedge’s resistance, and is currently trading above.
Inverse Head and Shoulders, represented by the three cyan triangles. This formation is also complete. With an incoming 33% upside target from the neckline. Currently price is trading slightly above the neckline, with no attempted throwback.
Descending Broadening Wedge, this formation is less significant than the previous two. Represented on the chart by the magenta trend lines, it provides another upwards confirmation for the AltcoinCap. As well as a possible support zone for an incoming throwback.
Support and Targets
Altcoin Market Cap Support levels: $104B, $99.5B
Altcoin Market Cap Target: $136B
Fibonacci retracement levels on the Altcoin Market Cap dictate two immediate support zones. The minor support level being $104B, and the major support zone is around $99.5B.
I highlight these support zones due to their importance. If Altcoins and the AltcoinCap were to experience a sell-off in the form of a profit take. Once the AltcoinCap finds support at the highlighted zones, it could present opportunity for long entries on certain tokens.
Overhead targets and expected resistances are highlighted on the above chart. $136B being the most significant immediate target, as Fibonacci levels and the Inverse Head and Shoulders target are in confluence there.
Consensus remains the same, continuation of the interim rally is expected up until the $136B mark. This rally will not impact all Altcoins, various Alts will react differently.
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