The crypto market has just turned down again early on Monday. Total2 (market capitalisation of all cryptocurrencies, excluding $BTC) has declined 4.2% so far on the day, and even major alts, such as $ETH, are down more than 5%. When will this downtrend end?
Another week, another crypto crash
Another week, another crypto crash. The Fear and Greed Index is still in neutral, suggesting that the market is perhaps waiting for better times to appear, or even for a big crash that will maybe signal the bottom.
Bitcoin Dominance spikes
Source: TradingView
Bitcoin Dominance (BTC.D) has spiked up, and is once more underneath the resistance at 61.6%. Should it break through, it would be signalling that this current crash is about to get a lot worse.
Altcoin market cap at major support
Source: TradingView
The Total2 chart on the weekly is showing that the combined altcoin market cap is resting on the all-important major horizontal support of $1.18 trillion. Should this support fail, and a new candle body opens below at the end of this week, this could spell some big trouble.
However, this is a very strong support, and even if the price does start falling through, there is a whole week left for the bulls to force it back above again.
At the bottom of the chart, the Stochastic RSI is showing that it is very near the bottom. The rally is in the pipeline, but bears may do a lot of damage before it arrives.
The $ETH price matters
Source: TradingView
Given the sheer size of its $323 billion market cap, the $ETH price matters in terms of the overall performance of altcoins. It can be seen in the chart overhead that the price has fallen to a horizontal support at $2,700. Should it break further down from here, and plunge through the small ascending trendline, a lot more downside could be on the cards.
Major support levels are below. First at $2,350, and then at 2,150. This last horizontal support level also marks the boundary of the bull market trendline – a last-ditch line in the sand.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.