A closely followed crypto analyst says the $425 billion resistance level for the altcoin market cap may soon be broken.
In a new strategy session, crypto trader Rekt Capital tells his 535,600 followers on the social media platform X that the OTHERS chart, which depicts the total crypto market cap excluding the top ten coins, may soon have a massive recovery.
[adinserter block="1"]He says that the OTHERS retracement from the $425 billion level is shallower than prior breakdowns, suggesting there is now a greater potential for the alt market cap to flip it into support.
“Altcoin market cap has indeed rejected from $425 billion resistance (black). Altcoin market cap has retraced substantially since. However, this is altcoin market cap’s way of producing a shallower retrace to show how $425 billion is weakening as a point of rejection.”
The analyst believes the shallower retracement could give the altcoin market cap more firepower to hit new local highs.
“Since rejecting from $425 billion resistance (black) altcoin market cap has retraced -51%. This is still shallower compared to the previous rejections from ~$425 billion resistance (-69% and -85%). Should altcoin market cap bottom in the near future, then altcoin market cap will have an easier time at breaking beyond the weakened $425 billion resistance over time.”
The OTHERS chart is currently at $271.27 billion.
The analyst also updates his outlook on Bitcoin (BTC), predicting the flagship crypto asset will trade sideways in the near term on the weekly chart.
“Bitcoin revisited the $101,000 level (black). In fact, Bitcoin even daily closed above it, but failed the subsequent post-breakout retest of it into new support BTC is probably going to consolidate between $98,300 and $101,000 for the time being.”
Bitcoin is trading for $96,860 at time of writing, down 1.1% in the last 24 hours.
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