Altcoins Test Key Support Amid Market Slide
Altcoins are holding near major support levels despite a broader market slide, with the altcoin market cap (excluding Bitcoin) approaching critical Fibonacci zones. A breakdown to $940 billion (0.618 level) or $717 billion (0.786 extension) would signal a deeper correction, while a rebound could target $1.42 trillion and $1.55 trillion resistance. Bitcoin’s fate remains central: its failure to stay above the main ascending trendline around $95,700 risks dragging altcoins lower.
Meanwhile, USDT Dominance shows signs of a bearish breakout from a descending trendline, echoing previous bull-market peaks when stablecoins held value rather than moving into crypto. A topping Stochastic RSI suggests dominance may soon pull back, but confirmation is required.
On the macro side, the U.S. Dollar Index (DXY) was rejected at the $100 level, hinting at potential dollar weakness. Historically, a softer dollar boosts crypto inflows, offering hope for a recovery if Bitcoin and altcoins defend their supports. Traders should watch Bitcoin’s trendline and USDT Dominance for cues on short-term downside risk versus potential recovery.
Bearish
Altcoins and Bitcoin are testing critical support levels, and a break below these zones historically leads to accelerated declines. The USDT Dominance breakout mirrors past bull-market peaks when traders shifted into stablecoins ahead of corrections. Although the DXY rejection suggests potential dollar weakness—which can support crypto inflows—the failure of Bitcoin to hold its ascending trendline around $95,700 presents immediate downside risk. Similar patterns in 2021 saw altcoins slump when Bitcoin lost its trendline, reinforcing a bearish short-term outlook. Longer-term, sustained dollar weakness and trendline defense could restore bullish momentum, but near-term trading favors a cautious, bearish stance.