Altcoin Market Explodes By Over 50% In 30 Days, Is Crypto Due for A Pullback?

Tony "The Bull" Severino

5 years ago

3 mins read

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This week, the total altcoin market cap broke out from local downtrend resistance, causing many individual crypto assets to go on monstrous rallies, some to as much as 400% gains.

The breakout also caused the total crypto market cap sans Bitcoin to rise from $50 billion to over $77 billion, resulting in 50% growth within a 30 day period. With such astronomical gains, are investors ready to take profits, causing a pullback across the crypto market?

Altcoin Bulls Push Forward to 50% Gains, But Bears Await a Deep Crypto Correction

All this week, altcoins across the top ten cryptocurrencies by market cap and deeper on the list, have been exploding through downtrend resistance and going on massive rallies.

The increased bullishness is on the heels of Bitcoin potentially bottoming this past December once again. On December 17, the leading cryptocurrency by market cap touched a low of $6400 forming the head of a sizable inverse head and shoulders pattern. The pattern later confirmed, and push the price of Bitcoin all the way to $9,000 as the high as of the time of this writing, but the cryptocurrency could push higher given how strong the momentum appears to be.

Bitcoin‘s bullish momentum also caused surges in Ethereum, Litecoin, Ripple, and many other top cryptocurrencies. Even Bitcoin forks Bitcoin SV, Bitcoin Cash, Gold, and Diamond all went on a tear.

The clean break of downtrend resistance on the total altcoin market cap – a weighted aggregate of all cryptocurrencies sans Bitcoin – has caused the crypto market to catch fire, with dozens of assets going on rallies of 50% of higher.

https://twitter.com/thecryptodog/status/1218092486121279488?s=21

Even Bitcoin itself rose over 30% in 30 days. However, the altcoin market’s gains were even stronger, given how oversold the alternative crypto assets are after two full years of a bear market.

The total altcoin market cap rose a total of over 55% in 30 days. As the saying goes, what goes up, must come down, and after such a strong, parabolic rise, the market is almost certain to suffer a deep correction that puts over-exuberant investors in check.

https://twitter.com/classicmacro/status/1218052574437310464?s=21

A pullback in Bitcoin when it reaches the 200-DMA could be the trigger that kicks off such a selloff, sparking not only Bitcoin to suffer losses, but altcoins across the market as well.

Ethereum, Litecoin, and others have only recently begun to catch up slightly to Bitcoin on their ratios, so the fall in altcoins may not be as deep as what could result in Bitcoin, especially because altcoins have broken out of their downtrend resistance, while many argue that Bitcoin has not.

Bias often clouds how trendlines are drawn, so it’s difficult to say who is wrong or right. The only thing for sure is, after 50% gains, it wouldn’t at all be surprising to see a large correction.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
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Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.