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The Altcoin Index Perpetual Futures broke out of an important resistance level last week, which could indicate that the key altcoins are in a prime position to continue their upward move due to the strong momentum in the crypto market.
$ ALT perp:
Breakout ✅
Retest ✅
Consolidation ✅
Continuation ✅ pic.twitter.com/V3Q3Kv9fwy– The Crypto Monk ⛩ (@thecryptomonk) January 14, 2020
After the first break out of the resistance level, he corrected to test the level again, consolidated and broke cleanly out of the resistance level. These factors could act as a catalyst for the altcoin market.
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Large crypto assets with large profits
Within a few hours, the prices of major crypto assets like Ethereum, XRP, Bitcoin Cash, Bitcoin SV, Litecoin and EOS are extremely strong and there seems to be no end in sight. Bitcoin Cash and Bitcoin SV gained the most on that day, with 25 percent and 97 percent, respectively.
Compared to Bitcoin, most crypto assets have fallen 50 percent in the past six months alone, with some assets like Ethereum and XRP ending in a net loss in 2019. According to crypto trader Josh Rager, the Bitcoin price will likely test the next upcoming resistance level of $ 8,750.
“[Bitcoin] looks good. The $ 7,900 acted as support for the previous trading range in September-October 2019 and now act as support for POC (Point of Control since May). A test at $ 8750 should follow next, the test and closure above should break up to $ 9050 +. If the price collapses, it’s $ 7900s of support, ”he said.
Crypto Altcoin rally
Still, it is best to be careful. Most altcoins have risen by around 40 percent in the past month, even with large crypto assets like Ethereum, While sentiment around the crypto market remains optimistic, altcoins could decline sharply in the short term if the market responds to higher levels with lack of buying demand. As a well-known trader said, the mid-$ 8,000 outbreak of Bitcoin was significantly weaker than the surge to $ 12,000 last year.
If there isn’t enough demand to push BTC to $ 9,000, which many investors had expected when the first $ 8,000 breakout hit on January 8, the dominant cryptocurrency could be prone to withdrawal.
Text credit: newsbtc
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