As the Bitcoin price remained around $28,800, the altcoins recorded minor swings, before beginning to display big moves since Bitcoin remained stuck at $30,000. Bitcoin’s sluggish behaviour is expected to persist until the altcoins are closer to undertaking a giant price action in the coming days.
The altcoin market capitalization, which has been trading significantly more bearishly than the total market cap including all tokens, rebounded from its lows near $1.01 trillion, and has been steadily rising. However, the levels still fail to exceed $1.2 trillion as the volume has decreased by more than $10 billion in comparison to the first few weeks of 2023. Due to this, most tokens remain sideways, yet the trend is expected to continue as the altcoins draw nearer to a major breakout.
The altcoin market cap is also seen forming an inverse head & shoulder pattern, which is a trend reversal indicator yet to be confirmed. To do so, the levels must break through the top resistance, and if the altcoin market cap continues to display an upswing, then it is likely that it will trigger a bull cycle and test higher targets.