If this happens, the altcoin market cap could rally 5x to $4.5 trillion.

The post Crypto Bull Market: Altcoin Market Cap Could Rise Fivefold to $4.5 Trillion appeared first on Coinpedia.

Bitcoin (BTC) is testing an important resistance area between $44,100 and $44,500 following a breakout earlier this week. Despite the initial optimistic sentiment, market analysts warn of a potential sell-off in the next few days.

With the year-end and New Year holidays approaching, it is expected that investors’ profit taking will accelerate. Additionally, the market has likely already set the stage for a ‘sell the news’ scenario, considering the excitement surrounding the approval of a spot Bitcoin exchange-traded fund (ETF) in the US.

A report by CoinShares shows a notable shift in investor behavior. After weeks of cash flowing into Bitcoin investment products, the recent $33 million outflow suggests there may be a change in market sentiment.

Technical indicators suggest a price reversal

From a technical perspective, Bitcoin appears to be overbought. The daily relative strength index (RSI) suggests a potential reversal. The formation of a triple top pattern on the daily time frame combined with a bearish divergence in the RSI further strengthens this view. Moreover, Bitcoin’s dominance on daily and weekly time frames is showing signs of weakness with a new head and shoulders pattern at around 53%. This reversal of dominance could soon signal the start of ‘altcoin season’.

Altcoin market capitalization achieves breakthrough

#Altcoin market cap is spinning