Trader Says $425,000,000,000 Altcoin Market Cap Likely To Be Broken, Updates Outlook on Bitcoin

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.

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.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney