After the approval of the United States’ first spot ETF, Bitcoin’s price surge to $49,000 was replaced by a decline, causing significant losses for altcoins. Investors are anticipating a halt in the selling pressure on Bitcoin and a potential rebound for altcoins. Crypto analyst Miles Deutscher has provided a crucial analysis in this context.
Deutscher’s analysis focuses on the TOTAL3 chart, an altcoin index excluding Bitcoin and Ethereum, which is currently undergoing a retest phase. He suggests that the completion of this phase could lead to a strong recovery for the altcoin market.
The TOTAL3 chart, as shared by Deutscher, indicates that the altcoin market remains strong, holding above the weekly 200EMA and horizontal support. He notes that there’s no cause for panic as long as there’s no weekly candle close below the support line (orange line).
The TOTAL3 chart, representing the market value of all cryptocurrencies excluding BTC and ETH, is currently above the support line at around $450 billion, standing at $462.52 billion.
In technical analysis, a retest refers to a price revisiting a previously breached support or resistance level to confirm or reject it. A successful retest usually signals the continuation or reversal of the trend. Deutscher’s reference to a retest suggests a potential bullish signal if the price confirms the support level.