Ready for Liftoff: Altcoin Market Cap Breaks Out of Downtrend

Tony "The Bull" Severino

Last Updated: January 14, 2020 5:00 pm

3 mins read

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The crypto market, including both Bitcoin and the entire slate of various altcoins, has been in a bear market for two full years now. After a brief rally in mid-2019, cryptocurrencies fell back into a downtrend that they’ve been stuck in for the last six months at a minimum.

But with the recent rallies taking place across the market, the total altcoin market cap sans Bitcoin has broken out from recent downtrend lines along with many of the market’s top assets. Could this be the all-clear signal that crypto is once again ready for liftoff?

Altcoin Market Cap Breaks Out of Downtrend, Fueled By Alt Rally

2017 was a perfect storm. Bitcoin’s meteoric rise took the world by storm, the ICO boom fueled Ethereum’s rise, and altcoins took off like a rocket ship destined for outer space. The combination of assets reaching all-time highs left and right, caused extreme FOMO, and asset prices to go parabolic.

As the saying goes, though, what comes up must go down, and that’s exactly what happened to the crypto industry once the new year turned to 2018.

After that, crypto prices fell by as much as 99%, and the entire market has spent two years battling a bearish cycle. The market took a quick break for a bear market rally in mid-2019 but quickly fell back into a downtrend – a downtrend the total altcoin market has broken out of.

The total altcoin market cap is an aggregate of all altcoins in the crypto space, sans Bitcoin. Because Bitcoin is such a dominant force in the market, removing it can help provide a clearer analysis for altcoins. In this case, Bitcoin is also breaking out of its downtrend, but a closer look at the altcoin market cap chart shows that the breakout is a lot more significant.

Top Ten Cryptos Shine, But XRP and Binance Coin Lag Behind

The breakout can also be seen across a number of crypto assets, including Litecoin, Ethereum, Bitcoin SV, and more. In fact, all crypto assets across the top ten by market cap have broken through downtrend resistance aside from XRP and Binance Coin.

XRP has been a poor performer throughout the last two years, but Binance Coin had a strong year last year. However, the former strength could cause more aggressive selling from investors who are still in profit, resulting in the anomaly.

It’s worth pointing out, though, that the altcoin market cap isn’t entirely out of the woods. In the first above chart, the altcoin market cap can be seen breaking out of downtrend resistance during a prior downtrend, only to later fall back below resistance, leading to a massive drop.

If history repeats, the selloff may not actually be concluded, and there is still resistance dating back from all-time high that must be broken through for a new uptrend to truly begin.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.