Altcoin Market Approaches Crucial Support Level Amid Bearish Crypto Sentiments

The altcoin market remained in limbo following increased uncertainty and anxiety caused by regulatory scrutiny in the United States. Despite most investors accessing Web3 protocols for trading, the fear of governments blocking certain IP addresses like what New York Attorney General Letitia James did to CoinEx remains a significant concern to most traders. As a result, on-chain data shows cash flow into the crypto market has favored the Bitcoin market in the recent past.

Moreover, Bitcoin dominance broke a key resistance level of around 48 percent and is currently approaching 50 percent according to market data provided by TradingView.

Altcoin Market Cap Analysis

According to a popular crypto analyst on Twitter Crypto Tony (@CryptoTony_), the altcoin market cap has approached a key support level in the daily time frame. The analyst argues that the altcoin market cap has reached the neckline of a head and shoulders-candle pattern, which could either yield further capitulation or a rebound.

However, based on the current crypto sentiments, the altcoin market is likely to continue sideways before dropping further in the coming months. Despite the fact that on-chain data shows investors have accelerated their accumulation pace, the crypto market is still plagued by low liquidity.

“Explains the nice relief we are seeing on some Alts, but we still need to see a lot before we get a reversal…Head and Shoulders pattern remains the top outcome,” the analyst concluded.