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VI Market capitalization Altcoins (ALTCAP) bounced off the key Fib level after a drop of 69% since the all-time high.
ALTCAP drops 69% from ATH
ALTCAP has been falling since hitting an all-time high of $1.70 trillion in November 2021. This drop precedes a bearish divergence in the weekly RSI (green), currently has dropped to the oversold zone.
The downtrend continued until it hit a low of $427 billion on June 18. The low was made very close to the 0.382 Fib retracement support at $395 billion and was in the previous all-time high. that's $445 billion.
So, it can be said that the main support zone is from $ 395 to $ 445 billion. Measuring from an all-time high, ALTCAP is down 69% to date.
Weekly ALTCAP Chart | Source: TradingView
Current Resistance
The daily chart shows that ALTCAP has fallen below the descending resistance line since early April.
Currently, the resistance line is at $600 billion, which coincides with the horizontal resistance area.
The daily RSI is also bullish and has broken out of its oversold zone. A breakout above this line/area and RSI movement above 50 is required for the trend to be considered bullish.
If this happens, the next resistance will be $ 750 billion.
Daily ALTCAP Chart | Source: TradingView
Counting waves
Trader @Altstreetbet tweeted a chart of ALTCAP, saying that the entire downtrend will be complete after another final drop.
The source: Twitter
Since the aforementioned all-time high, it is possible that ALTCAP has completed the ABC correction structure (black). The number of sub-waves is plotted in yellow, indicating that a 5-wave bearish impulse has completed.
The two main reasons for this are that the A:C wave has so far been 1:1 and the movement is contained entirely inside a descending parallel channel.
A rise above the midline of the channel at $600 billion, which also coincides with the previously outlined resistance line/area would be a strong sign that the correction is complete and a new uptrend has begun. head.
Daily ALTCAP Chart | Source: TradingView
