The crypto space is facing acute bearish pressure, with the majority of the tokens plunging down from their respective resistance levels. While the Bitcoin price dropped below crucial support, Ethereum also followed the star crypto. Hence, the altcoins have also dropped significantly, which may intensify in the coming days.
Recently, a new trend kicked off in the crypto space where memcoins gained immense attention and adoption. In the meantime, altcoins also started to fly high, but the star crypto, Bitcoin, continued to hover within a narrow range. Hence, it was anticipated that the AltSeason may be around the corner.
However, the altcoin season index, which signals the possibility of an Altseason has reached its bottom, indicating the focus has now shifted back to Bitcoin.
Altseason begins if 75% of the top altcoins have performed better than Bitcoin over the last few months. The plunged metrics indicate that Bitcoin has performed well and hence it may be a ‘Bitcoin Season’. However, all the major alt-seasons have been triggered from these levels, and hence a similar rebound is also expected at the moment.
So what’s next for Bitcoin and altcoins?
The altcoin market cap, excluding Ethereum, is approaching critical levels that must be maintained if bearish action intensifies.
The market cap has been rejected from the highs a couple of times, forming an ‘M-shaped’ pattern and approaching the neckline of the formation. Therefore, the altcoin market cap, which is hovering around $348.2 billion, is required to be held tight above $340 billion, which may trigger a rebound. Otherwise, if these levels fail to provide the base, a plunge below $300 billion may be imminent.