Markets
$2 Trillion Support for Crypto Market Cap: Will Altcoins Reverse?
Armand Shirinyan (Arman Shirinyan)
Cryptocurrency Market Could Reverse Soon, But Don’t Expect an Explosive Rally
Read U.TODAY at
Google News
The cryptocurrency market Market capitalization is an important metric that reflects the size and integrity of the market at a given point in time. However, it is generally considered a broad metric, not very useful for finding entry or exit points. But at the same time, there is a psychological threshold that can be used for support or resistance levels.
An important psychological and technical milestone was recently reached when the market capitalization of all cryptocurrencies, excluding Bitcoin, has surpassed $2 trillion. This significant turning point serves as a major support area and lays the foundation for future bullish momentum in the altcoin market.
The market cap has returned to the “Reload Zone,” which is located between the 61.8% and 78.6% Fibonacci retracement levels. These levels have historically been important for locating potential turning points. Strong buying interest is evident from the market’s propensity to bounce off these zones. It appears that the market is poised for a major rally based on the current setup.
The chart shows a possible trajectory for market capitalization, which would indicate a significant increase from current levels and take it to $1.417 trillion. As investors prepare for a period of recovery and growth, this projection is in line with the general bullish sentiment emerging in the Marketplace.
This bullish outlook is influenced by several factors. First, risk assets like cryptocurrencies stand to gain from a surge in liquidity brought about by the Federal Reserve’s potential rate cuts. Second, the positive sentiment is bolstered by developments in the regulatory arena, such as the SEC’s handling of Ethereum ETF filings and the CFTC’s stance on cryptocurrency regulation.
Institutional interest is also on the rise, as seen in the growing involvement of major financial institutions like JPMorgan and Goldman Sachs in the cryptocurrency space. Further evidence of a market-wide recovery comes from JPMorgan’s bullish predictions for Bitcoin’s August rally and Goldman Sachs’ impending tokenization initiatives.
About the author
Armand Shirinyan (Arman Shirinyan)
Arman Shirinyan is a trader, cryptocurrency enthusiast, and SMM specialist with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be in widespread use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects, and technical analysis of crypto trading pairs.