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All attention has been focused on Bitcoin, which has surged almost 30% over the past month leading markets. However, altcoins, which usually lag their big brother Bitcoin, are also showing strength in patterns that mirror previous bull market cycles.
Total crypto market capitalization is down 2.3% on the day. Nevertheless, it has gained more than $300 billion over the past month and held on to those gains.
Altcoin Market Momentum
On November 17, analyst ‘CryptoCon’ observed that altcoins were getting stronger despite the major moves being made by Bitcoin. They stated:
“This is shown clearly by both the uptrend in altcoin strength and the cross of the 50-week SMA (simple moving average) barrier.”
In previous market cycles, such as 2016 and 2017, strong upward price action occurred after this technical indicator was crossed.
However, the cross has come a little early this cycle, as it would normally be expected next year.
The analyst added that “more powerful price action like 2016 – 2017 for both Bitcoin and Altcoins and less ‘2020’ nonsense,” is expected.
However, analyst ‘Jelle’ pointed out that things are still very early for altcoins since the total altcoin market cap hasn’t broken out from the accumulation range yet.
Fellow analyst ‘Moustache’ highlighted the “Supertrend Indicator” in a November 17 post on altcoins. The indicator has flipped to a buy signal for altcoins, which it has done prior to previous bull markets.
Crypto influencer and Cardano advocate Dan Gambardello offered another bullish angle for altcoins:
“Did you know that Blackrock knows altcoins are chipping away at Bitcoin dominance & they publicly acknowledged it in their filing?”
Bitcoin is the market leader making the first move when cycles change. It is then followed by Ethereum and other high-cap altcoins before the rest of the usually lagging altcoin market moves.
Read more: 7 Must-Have Cryptocurrencies for Your Portfolio Before the Next Bull Run
Friday Retreat
By all accounts, it is still early days for altcoins, but things are starting to wake up.
Nevertheless, total capitalization has retreated to $1.43 trillion over the past 24 hours as a cooling period begins.
Not all altcoins are in the red, however, with Dogecoin (DOGE) bucking the trend with a 5.4% gain. Avalanche (AVAX) is on fire today, pumping 18% to top $24, while Kaspa (KAS) has made 20% on the day.
The biggest altcoin losses were Solana (9.6%), Chainlink (5%), and Polygon (MATIC), dropping 4.7% on the day.