- Alts have recovered well after losing $12 billion in market cap this week
- $92 billion level is in play again and would lead to another alt run
- Bitcoin could spoil the party, with a big move imminent
The alt market continues to hold strong despite its market cap losing $12 billion in the past week or so. Having crossed the key $92 billion level that we outlined last week, the alt coin market cap was eventually beaten back at $94 billion, dropping right down to $81 billion as Bitcoin dominance increased. Alts have staged a nice recovery however, enjoying four days of consistent growth, leaving us looking once more at the $92 billion level as they key area to watch:
Breaching and holding this level will be great news for alts, and we can look at the next target of $110-$120 billion for the next serious leg up for alts. Barring the odd anomaly, in general the alt market has naturally had a quiet week after making some serious moves in past months, and hopefully we’re getting ready for another run up.
Bitcoin Threatens to Ruin the Recovery
As usual however, Bitcoin hangs like a sword of Damocles over the entire alt market. It is packed in tight to the end of a wedge that has to be resolved one way or the other within the next few days, with its marked lack of volatility typical of Bitcoin before it engages in a huge move:
Further evidence of an imminent move can be highlighted by the Bollinger Bands, which haven’t been this tight since December last year when Bitcoin moved from $7,100 to $10,500 within two months:
Of course we can’t guarantee which way Bitcoin will go – all we know is that it will be a big move. Fundamentally, with the stock market, gold,and silver still riding high, Bitcoin should in theory join them, but Bitcoin is still its own beast and tends to act independently of other markets in the main. On the technical side however, Bitcoin has been in an undeniable downtrend for around a month ever since being rejected at $10,500:
It is possible then that we could see a drop below the $8,600-$8,700 support and retest the $7,000s before coming back up. If this were to happen then we would see an inevitable alt crash, but there could be some once-in-a-lifetime opportunities once the market settles.