The altcoin market is facing potential declines as a macro ‘Head and Shoulders’ pattern suggests the end of a multi-year uptrend. The $200 billion neckline, now acting as resistance, has been breached, with prices dipping to $190 billion. This technical breakdown could lead to a significant drop in mid-to-low cap tokens, potentially revisiting mid-2023 lows.
Institutional capital is increasingly favoring top-tier assets like Bitcoin and Ethereum, leaving smaller altcoins vulnerable. Bitcoin is currently trading around $85,000, while Ethereum has dropped to $2,922. The total crypto market cap stands at $2.93 trillion, with the segment excluding the top 10 at $307 billion. Analysts warn that altcoins outside the top 10 may not recover alongside major cryptocurrencies, as liquidity concentrates in more established assets.
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