The cryptocurrency market has been increasing since the beginning of 2019. However, this increase has not been equally divided between Bitcoin and altcoins. The Bitcoin price has increased at a faster rate, causing the altcoin market cap dominance to decrease.
However, that has recently begun to change. Numerous altcoins, mostly Chinese based, have posted increased by up to 40%, likely resulting from an endorsement of blockchain technology by the Chinese government.
The altcoin market cap has been showing signs of life and has initiated a gradual upward move. The October 26 decrease looks more like a short-term correction than the beginning of a reversal.
Crypto analyst @paddystash stated that the altcoin market cap dominance has been gradually increasing after the sharp downward move of October 25-26, when Bitcoin enjoyed one of its biggest surges yet.
Altcoin dominance has continued to climb back upwards since the big $Btc spike from $7.4 to over $10k last week. $ETH just jumped from $181 to a high of $188 just a few hours ago. ALts all look ready to move again. Lets see Big alts and Chinese alts blow up and bring the rest up pic.twitter.com/QIIcZvh32D
— Paddy Stash (@paddystash) November 4, 2019
He mentioned Ethereum’s short-term increase and the previous increases generated by Chinese coins.
How long will the altcoin market cap continue to increase? Let’s take a closer look.
Altcoin dominance has been decreasing since the beginning of 2018 when it was trading near 65%.
The decrease briefly stopped at 30%, and the price has been increasing since.
30% represents a minor support area, while there is a major support area at 23%.
Additionally, the market cap has made three higher lows, in September, October and November respectively, combined with a bullish cross of the 10- and 20-day moving averages (MA).
The price is trading above both, heading for the minor resistance area at 35%.
It looks as if the price will eventually get there and possibly move higher.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!
The post Altcoin Market Cap Will Continue to Increase, Suggests Analyst appeared first on BeInCrypto.