The TOTAL3 Breakout: Does This Signal the Start of Altseason?
This chart displays the price action of what's labeled as "TOTAL3," which represents the combined market capitalization of all cryptocurrencies excluding Bitcoin and Ethereum. Essentially, it tracks the overall value of the altcoin market.
The chart depicts the price action of the "Crypto Total Market Cap Excluding BTC and ETH" (referred to as TOTAL3 in the label) over a period from October 2024 to April 2025. We can see a clear uptrend followed by a period of consolidation, and then a breakout from that consolidation pattern.
Key Observations
Initial Uptrend: The chart shows a strong, steep uptrend that begins around November 18, 2024. This indicates a period of significant buying pressure and increasing valuation for altcoins (crypto excluding BTC and ETH).
Consolidation: Around early December 2024, the upward momentum slows, and the price enters a consolidation phase. This is characterized by a rangebound pattern that appears to be forming a descending triangle.
The white trendlines clearly define this descending triangle pattern, with a descending resistance line and a horizontal support line. This pattern is typically considered bearish.
Bullish Breakout: Around mid-January 2025, the price breaks above the descending resistance line of the triangle. This is a bullish breakout, indicating that buying pressure has overcome the previous selling pressure. The price rises above the upper trend line and confirms the breakout.
Timeframe: The chart is using a daily (1D) timeframe, which is suitable for mid- to long-term analysis.
Interpretation and Potential Implications
Bullish Signal: The breakout from the descending triangle suggests a continuation of the initial uptrend and is considered a bullish signal. It implies that the market may be entering another phase of price appreciation for altcoins (excluding BTC and ETH).
Confirmation Needed: While the breakout looks valid, it would be beneficial to monitor volume activity to confirm the strength of the breakout.
Possible targets: The length of the base of the descending triangle could be added to the breakout point for a possible target, assuming it continues upwards.
Risk Management: As always, with any price pattern, a successful breakout is never guaranteed. Traders may consider setting a stop-loss below the breakout line as part of their risk management strategy.
The chart depicts the price action of the "Crypto Total Market Cap Excluding BTC and ETH" (referred to as TOTAL3 in the label) over a period from October 2024 to April 2025. We can see a clear uptrend followed by a period of consolidation, and then a breakout from that consolidation pattern.
Key Observations
Initial Uptrend: The chart shows a strong, steep uptrend that begins around November 18, 2024. This indicates a period of significant buying pressure and increasing valuation for altcoins (crypto excluding BTC and ETH).
Consolidation: Around early December 2024, the upward momentum slows, and the price enters a consolidation phase. This is characterized by a rangebound pattern that appears to be forming a descending triangle.
The white trendlines clearly define this descending triangle pattern, with a descending resistance line and a horizontal support line. This pattern is typically considered bearish.
Bullish Breakout: Around mid-January 2025, the price breaks above the descending resistance line of the triangle. This is a bullish breakout, indicating that buying pressure has overcome the previous selling pressure. The price rises above the upper trend line and confirms the breakout.
Timeframe: The chart is using a daily (1D) timeframe, which is suitable for mid- to long-term analysis.
Interpretation and Potential Implications
Bullish Signal: The breakout from the descending triangle suggests a continuation of the initial uptrend and is considered a bullish signal. It implies that the market may be entering another phase of price appreciation for altcoins (excluding BTC and ETH).
Confirmation Needed: While the breakout looks valid, it would be beneficial to monitor volume activity to confirm the strength of the breakout.
Possible targets: The length of the base of the descending triangle could be added to the breakout point for a possible target, assuming it continues upwards.
Risk Management: As always, with any price pattern, a successful breakout is never guaranteed. Traders may consider setting a stop-loss below the breakout line as part of their risk management strategy.
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