- Golden cross appears on the altcoin market cap chart, hinting at a possible bullish phase similar to 2020.
- Altcoin market shows resilience post-2020 Covid Crash, with a strong recovery and a potential new upward trend in 2024.
- Convergence of moving averages in 2024 may signal another bull run, echoing the patterns seen in the 2020 altcoin market.
The altcoin market is showing signs of a shift, with analysts pointing to a potential bullish phase similar to the one seen in 2020. According to crypto analyst @el_crypto_prof, a golden cross, or bullish cross, has appeared on the monthly chart of the total market capitalization for altcoins.
This indicator, marked by the convergence of two moving averages, has historically signaled the beginning of a major upward trend. The last time this pattern emerged was in 2020, just before a substantial market rally. The market appears to be approaching a critical point, with the potential for another notable movement in altcoin prices.
Historical Context: 2020 Covid Crash and Recovery
The chart spans from 2018 to 2024, highlighting key events in the altcoin market. One notable period is the 2020 Covid Crash, where the market experienced a sharp decline in capitalization. This drop is marked by a yellow circle on the chart, corresponding to the global economic downturn caused by the COVID-19 pandemic.
Source: el_crypto_prof on X
Despite this setback, the altcoin market demonstrated resilience, with a strong recovery phase beginning in late 2020. The market capitalization rose steadily, ending in a substantial bull run that peaked in late 2021 or early 2022.
Current Market Trends: 2024 and Beyond
The chart highlights another yellow circle around 2024, suggesting a potential shift in market dynamics. The market capitalization appears to be near a support level, indicated by the convergence of two key moving averages, likely the 50-day and 200-day averages.
These moving averages are essential tools for analyzing long-term trends, and their crossing has historically marked the beginning of bullish phases. With the current setup resembling the conditions seen in 2020, analysts and investors are closely watching for a similar bullish crossover that could signal a rise in altcoin prices.
Moving Averages
In 2020, the crossing of these averages marked the start of a significant bull run. In 2024, the market is showing signs of a similar pattern forming. The convergence of these averages could indicate a critical moment for altcoins, potentially leading to another upward trend if historical patterns hold true.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
