Will Altcoins Fly Or Falter This Christmas?
A golden rule of trading is that you don’t get bullish at resistance. And right now, the altcoin market is hovering around a massive resistance level (green line). This chart shows the weekly price candles of the TOTAL2 index, which essentially measures the total market size of crypto without bitcoin. The index is now on its third attempt to break above the $650 billion dollar mark.
But here’s something that might interest the bulls. The last two times it hit this level (1 and 2, in the chart), it was immediately pushed back down the next week. But that never happened last week – the altcoin market pretty much finished off where it started. And now, it’s still consolidating around that major resistance level – despite this week’s drama about Binance and CZ.
Consolidation at resistance is typically more bullish than an immediate rejection. It means fewer investors are willing to sell their altcoins – because they see a bigger chance of a market breakout.
2 Scenarios for the altcoin market: Santa rally or not?
I’m no fortune teller, but there are 2 ways that this could play out going into Christmas.
- Green scenario: the index breaks above the resistance, and altcoins stage a monster rally.
- Blue scenario: another pullback – maybe into the blue line to fill out the ascending triangle chart pattern.
If you’ve already done all your altcoin shopping this year, you’re probably wishing for the green option. But if your altcoin sacks aren’t fully stacked, the blue option could be a Christmas gift.
As usual, none of this is investment advice. If you like this content, sign up for our newsletter here.