History may be about to repeat itself in the altcoin market after technical analysts spotted a crucial indicator that usually precedes a massive pump. The altcoin market cap daily chart on TradingView, which includes the market caps of all cryptocurrencies except Bitcoin and Ethereum, has reflected a Golden Cross.
History may be about to repeat itself in the altcoin market after technical analysts spotted a crucial indicator that usually precedes a massive pump. The altcoin market cap daily chart on TradingView, which includes the market caps of all cryptocurrencies except Bitcoin and Ethereum, has reflected a Golden Cross.
Most analysts consider the Golden Cross a significant indicator in a bull market, with historical data showing that several altcoins experience a price surge whenever the indicator flashes.
According to TradingView’s data, the last Golden Cross signal triggered a 93% rally in the altcoin market cap, which rallied from below $600 billion to over $1.1 trillion within one month.
A Golden Cross signal occurs when a shorter-term moving average crosses over a longer-term moving average. Typically, analysts use the 50-day and 200-day moving averages to identify the pattern. However, savvy traders often combine the signal with other fundamental triggers before making a final decision.
For instance, the Golden Cross indicator becomes most influential during capital rotation and after crypto behemoths like Bitcoin and Ethereum have front-run the market. The indicator also gains support from mainstream economic developments, like the upcoming FOMC meeting. Analysts believe a favorable report from US policymakers will form a tailwind that will support a notable rally for multiple altcoins, considering that the Golden Cross signal is already in place.
The altcoin market cap surged to $1.09 trillion last week before experiencing a momentary pullback. However, the crucial metric established support at $974 billion before rebounding to suggest a return of upside momentum.
TradingView’s data shows that the altcoin market cap, excluding the market capitalization of Bitcoin and Ethereum, stood at $1.05 trillion at the time of writing. Unfolding events of the coming days could trigger an upsurge that would see that value search for new frontiers and pursue new levels above the current all-time high of $1.16 trillion.
