Altcoins
Cryptocurrency Market Cap Hits $2 Trillion: Will Altcoins Reverse?
Arman Shirinyan
Cryptocurrency Market May Reverse Soon, But Don’t Expect Explosive Recovery
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The cryptocurrency market Market cap is an important metric that reflects the size and regularity of the market at a given point in time. However, it is generally considered a broad metric that is not really 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.
A major psychological and technical milestone was recently reached when the market capitalization of all cryptocurrencies, excluding Bitcoin, has surpassed $2 trillion. This important turning point serves as a major support zone and lays the foundation for future bullish momentum in the altcoin market.
The market cap has retreated to the “reload zone,” which lies between the 61.8% and 78.6% Fibonacci retracement levels. These levels have historically been important for locating potential reversal points. Strong buying interest is evident given the market’s propensity to rally from these areas. It appears that the market is poised for a strong rally given the current setup.
The chart shows a possible trajectory for the market capitalization, which would indicate a significant increase from current levels 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 market. walk.
This optimistic outlook is driven by several factors. The first is that risk assets like cryptocurrencies could benefit from increased liquidity driven by potential rate cuts from the Federal Reserve. The second is that positive sentiment is being 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 growing, as evidenced by the growing involvement of major financial institutions like JPMorgan and Goldman Sachs in the cryptocurrency space. JPMorgan’s optimistic forecast for Bitcoin’s August rally and Goldman Sachs’ impending tokenization initiatives are further evidence of a market-wide recovery.
About the Author
Arman Shirinyan
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects, and technical analysis of cryptocurrency trading pairs.