Four Signs The Altcoin Market Has Finally Bottomed

Bitcoin has made a sudden jump of around 9% in the past 24 hours, but altcoins are the real focus now as they are showing strength and decreasing BTC’s dominance. Right now, there are four signs showing that the altcoin market is more than strong – and that it can visit new highs very soon.

The recent surges from large caps have been in the double digits. One of the most prosperous altcoins over the past few days has been Dash (DASH). The Dash news yesterday showed that the altcoin surged 50% and Bitcoin Cash (BCH) followed with a 30% increase in the past four days. If we can draw a conclusion from this, it is easy to see that the altcoin market is strong and the capitalization is potentially bottoming.

The four signs showing that altcoins are now back start from the fact that a lot of them retraced to their cycle low levels. This means that many of them hit levels which weren’t seen before the bull market in 2017. Some of them even dropped to their January 2016 levels – a clear example for that is DASH.

Meanwhile, markets tend to move in cycles where data accumulates from previous periods. The Dash chart is clearly showing a cycle low in 2016. At the same time, a full retrace to these levels is not always necessary but can also retrace towards the cycle lows in 2017. One example of that is XMR – and the Monero news now which are showing that the privacy-focused coin recently retraced to its first support of the last cycle.

Next, we can also see that Bitcoin is in the process of finding a cycle low and that the long-term downtrends break to the upside now. Last of the four signs showing that altcoins are coming back is the fact that the total market cap eyes a potential breakout after a retest. The green zone from the total altcoin market capitalization indicates that the significant surge of altcoins is nowhere near its end.

The total altcoin capitalization needs to show strength and break the downtrend. If this occurs, the total altcoin capitalization could see $80 and $125 billion as the next levels.