As the Bitcoin price continued to soar beyond the major resistance of around $28,800, the altcoins remained largely inactive, recording minor swings. Further, these altcoins began displaying big moves ever since the star crypto remained stuck at $30,000. Currently, Bitcoin’s sluggish behaviour is expected to persist for as long as the altcoins are closer to undertaking a giant price action in the coming days.
Ever since the altcoin market capitalization rebounded from its lows close to $1.01 trillion, it has been rising following an ascending trend. Despite this, the levels are failing to exceed $1.2 trillion as the volume has plummeted by more than $10 billion compared to the first few weeks of 2023. The stagnant trend of the altcoin market cap has compelled most tokens to maintain a sideways trend.
However, the trend is expected to continue as the altcoins are closer to experiencing a major breakout.
Source: Tradingview
The altcoin market cap, excluding BTC & ETH, has been trading significantly more bearishly than the total market cap, including all the tokens. Besides, BTC dominance is soaring, which may not be good for the altcoins, which aim to propel high. However, the altcoin market cap has formed an inverse head & shoulder pattern, which is believed to be a trend reversal pattern, that has yet to be validated.
To do so, the levels are required to break through the top resistance, and a decent case can be expected. With the confirmation of the pattern, the lows of the bearish trend could also be identified. Therefore, if the altcoin market cap maintains a notable upswing, the possibility of triggering a notable upswing may further transform into a bull cycle testing higher targets.
