The universe of alternative cryptocurrencies to Bitcoin, commonly called altcoins, is trying to relaunch itself at the start of 2024. Analysts are observing encouraging technical signals on this still convalescing market, after the general collapse of prices in 2022. The conditions seem to be ripe for a potential bullish rally in altcoins in the coming months.
The total capitalization of altcoins leaves the accumulation zone
First positive element to note: the total capitalization of all altcoins has emerged from its “accumulation phase” according to several specialized firms. In other words, the crypto market has emerged from a long period of horizontal consolidation, where prices move without a marked trend.
Technically, this breach of the sideways price range is a harbinger of a possible positive directional trend. Concretely, this means that altcoins could enter a sustained bullish dynamic, a form of “bull run” long awaited by crypto investors.
This change in momentum comes after difficult months. Altcoins saw their valuation melt together with Bitcoin, victims of widespread distrust of crypto after the crash. The tide now seems to be turning.
Crypto Buy Signals on the MACD
Another technical indicator closely scrutinized: the famous MACD, an acronym which means “Moving Average Convergence Divergence”. This oscillator measuring the dynamics of crypto prices has just generated a “ golden cross “. This buying signal is considered particularly reliable by graphic designers.
The fast moving average of the MACD has cut upwards its slow moving average, confirming the transition into a bullish configuration. In the past, this signal has often preceded explosive crypto rallies in the altcoin market.
Of course, in the extremely volatile and unpredictable world of cryptocurrencies, no indicator offers absolute guarantees. But the positive MACD crossover seriously increases the likelihood of a prolonged bullish crypto move.
These different technical signals seem to announce more encouraging prospects for altcoins. However, be careful: the crypto market remains suspended from fluctuations in Bitcoin. And, macroeconomic risks persist, even if risk appetite returns to cryptocurrencies. Regardless, crypto investors will be keeping a close eye on altcoins in the coming weeks. The current configuration suggests the potential for a buoyant rally. The chances of an outbreak similar to the madness of 2021 seem slim, but some believe in it. To be continued…
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