Fractal Analysis Suggests Bullish Altcoin Market in Coming Months

• Analyst Jason Marks has found a fractal which could result in altcoins printing gains.
• While following the fractal, altcoins might claim a market cap of $1.85 trillion soon.
• In the past 24 hours, the majority of altcoins including DOT, LINK, ADA, and XRP, turned bearish.

As Bitcoin fell to the $92,000 price level in the past 24 hours, altcoins followed suit, turning red as well. However, an analyst on X (formerly Twitter), Jason Marks, suggests a bullish turn for altcoins may be on the horizon. He identified a fractal that could send the altcoins soaring. 

Altcoin Fractal Hints at Significant Growth

According to Marks’ chart , the fractal could push the altcoin market cap to $1.85 trillion. Currently, the total altcoin market valuation stands at $925 billion. However, the ongoing altcoin correction needs to end before such gains are possible.

Read also: Altcoin Season Index Moves to 48, Signalling a Neutral Market

In the past 24 hours, several major altcoins saw losses: XRP dropped 2.79%, Dogecoin (DOGE) fell 2.67%, Cardano (ADA) dipped 3.49%, and Chainlink (LINK) declined 4.62%. Additionally, Bitget Token (BGB) plummeted 11.49%, and Polkadot (DOT) plunged 5.88%. However, the meme coin Pepe (PEPE) bucked the trend, jumping 5.24% to trade at $0.00001923.

Factors Influencing Altcoin Growth

For a significant altcoin rally to occur, Bitcoin’s dominance needs to decrease. Currently, Bitcoin holds a 56.7% market dominance as it trades around $92,000.

The potential launch of altcoin spot exchange-traded funds (ETFs) next year could also fuel an altcoin surge. These ETFs could provide a more accessible way for investors to gain exposure to altcoins, driving demand and potentially boosting prices.

Altcoin Market Analysis

The weekly chart for the altcoin market cap shows a Relative Strength Index (RSI) of 60.95. This indicates that bulls are generally in control, but the RSI trend suggests that the market may continue to move sideways for a while.

Further, the MACD indicator also hints at a potential bearish divergence. The MACD line (blue) is moving closer to the signal line (red) which means that a bearish divergence could take place, resulting in the weekly chart turning bearish for altcoins. The bullish intensity of the MACD histogram is also waning.