- TOTAL2 broke major resistance in August and retested support during recent dips, confirming strong multi-year uptrend and market demand for altcoins.
- Monthly RSI is still over 59 following retesting breakout line, an indication of continued momentum and pursuit of the wider macro bullish trend.
- Bitcoin dominance approaches resistance and altcoins remain organized, Ethereum and other big altcoins are exhibiting renewed strength and have potential.
TOTAL2 continues to demonstrate strength despite recent market fluctuations. Altcoins are maintaining their multi-year uptrend with higher highs and higher lows. Investors observing the charts can find structure holding even during short-term dips.
Altcoins Retest Key Support Levels
The $TOTAL2 monthly chart shows a steady recovery after the recent dip. Altcoins broke major resistance in August around $1.6T, signaling a pivotal breakout. The recent pullback only retested this zone, confirming previous resistance as support.
During last Friday’s market crash, TOTAL2 wicked perfectly into the multi-year uptrend and rebounded sharply. The confluence of trendline and support levels indicates consistent demand. Even with widespread fear, the market structure remains intact.
Momentum indicators reinforce this trend. The monthly RSI broke a multi-year downtrend earlier in the year. It has now retested the breakout line, holding above 59, indicating the continuation of macro bullish trends.
Market Sentiment and Investor Options
Market sentiment shows signs of nervousness due to the correction, but this behavior is typical of healthy retests. Investors facing short-term volatility have three choices. They can step away and return after months, focus on higher timeframes, or sell and risk missing the next upward move.
CrypFlow tweeted, “If you can’t handle short-term volatility, you’ve got 3 options: Close the charts and come back in 2 months. Zoom out and focus on the higher timeframe. Sell… and watch the train leave without you.”
The larger trend is intact, even despite the anxiety. Adherence to the trendline and higher lows after it has gone up is a sure way of enabling investors to follow the macro trend in the market. Altcoins continue to hold firm, maintaining structure and momentum.
Bitcoin Dominance and Altcoin Dynamics
Bitcoin dominance currently mirrors levels seen in Q3 2019. Michaël van de Poppe noted, “#Bitcoin dominance is comparable to the stage of Q3 2019. First breakdown and structure break. Final painful correction on the markets, #Altcoins also vanished away during that period.”
Bitcoin dominance has bounced toward the 20-week moving average, nearing resistance levels. Although there will likely be small upside, the dynamics suggest altcoins may see some strength when Bitcoin dominance stabilizes.
When Bitcoin dominance stabilizes, we see Ethereum and altcoins gain some fresh strength. Van de Poppe predicted $ETH could push towards $5K signaling a potential new cycle for altcoins.Market structure, support zones, and momentum remain the key factors to monitor.
Despite the market’s wild behavior, TOTAL2 and broader altcoin indices are showing resilience. Multi-year trend traders and momentum traders can always look for opportunities while ignoring the short-term noise. The trend remains bullish with higher highs, higher lows, and an established and strong macro structure.
