Crypto At A Crossroads: Is This Time Different?

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In this analysis we're going to take a look at TOTAL3, which is the total marketcap of crypto excluding BTC and ETH. In other words, all 'smaller' altcoins.

As seen on the chart, the altcoin market has been in a dire state since the start of April, almost 5 months at this point.

For now, the bearish channel pattern stays intact. I'm anticipating some kind of breakout in the near future, we simply can't trade within this pattern forever.

Looking at recent history, the bears have the short-term overhand since we rejected the top resistance yet again. However, once a support/resistance is used too many times the market anticipates it and will trade against it. This means that bulls might wait for investors to short in huge numbers and start to buy and cause a minor short-squeeze.

Personally, I'm leaning bullish. Alts have gotten a severe beating over the months and are currently looking quite attractive, especially with BTC trading around 63k and a very high BTC Dominance.

For now, we're in a grey area. Wait until this pattern breaks for long-term entries.