The altcoin market has been punished over the last few days, with a lot of altcoins suffering retracements of more than 10% since the Bitcoin all-time high was achieved last Thursday. Has this correction come to its end? Would this be a good time to buy? Bull market in critical phase When buying anything at this stage of the bull market it must be borne in mind that there are no guarantees that the market will continue to rise. The last bull market that ended in early November of 2021 left many investors and traders trapped at the top as they waited for a blow-off top that never really came. The current bull market is in a critical phase as the bulls still try to break the shackles that will release them into a potentially violent uptrending market. If they don’t break those shackles, could the market be making a top right now? It’s in this kind of situation that fortune favours the brave. If there is a next glorious phase of the bull market to come, buying now could turn into a great move. That said, how many will have the conviction to do so? Total3 chart: Bounce or crash? Source: TradingView The Total3 chart (the combined market capitalization of all cryptos, excluding $BTC and $ETH) shows that the altcoins are on the edge of a potential precipice. The bull flag continuation patterns have all led to the price being pushed to its current level, from where it will either bounce, or come crashing down through the mini trendline (faint dotted line). At the bottom of the chart, the Stochastic RSI indicator lines are shaping to cross up. If they do so by the end of the week, this would be a bullish signal for the market. Bitcoin dominance test of trend break? Source: TradingView The Bitcoin dominance chart (BTC.D) always needs to be consulted in order to gain a better perspective on the altcoins and this is showing that dominance has dropped below the ascending trendline that goes all the way back to the end of 2022. The chart would suggest that dominance could be retesting the bottom of the trendline, and that a fall down to 57% could be on the cards. This could provide a major boost to the altcoins. A good place to buy Solana ($SOL)? Source: TradingView For a safer play, $SOL is one of the major layer one tokens that has come down to support, and could fall through this to perhaps touch and then bounce from the bottom of the triangle. If longing $SOL from either of these two areas a stop loss just below support/trendline would be a good idea. There are plenty of other altcoins that are at, or coming down to some good buy zones. Will fortune favour the brave that buy them, or will they get crushed by the bears again? This market will turn. It just remains to be seen if there is going to be a bit more downside. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
