Crypto Market Cap: Short-Term Pullback Before Major Recovery

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Technical Analysis
The chart illustrates a well-defined ascending channel for the total crypto market cap (excluding BTC), currently experiencing a downward retracement. The price action suggests a probable dip towards the lower boundary of the channel around the $969 billion support zone before rebounding significantly. This level aligns with previous price reactions and serves as a strong demand zone, making it a potential bottom before the market resumes its uptrend.

Fundamental Analysis

Liquidity Flow & Market Sentiment
The broader market has seen increasing stablecoin dominance (such as USDT’s market cap exceeding $130 billion), indicating risk-off behavior as investors move to safety. This suggests a short-term sell-off in altcoins before a reinvestment phase.
Institutional inflows into ETFs (like Ethereum and broader crypto ETFs) will likely drive the next bullish wave, but the current correction reflects temporary uncertainty.

Macroeconomic Factors
Interest Rate Policies: If the Federal Reserve signals rate cuts in mid-2025, risk assets (including crypto) will likely benefit from increased liquidity.
Regulatory Clarity: The market is awaiting key regulatory developments, especially in the U.S. and EU, which could influence capital inflows into crypto.

Altcoin Cycle & Market Recovery
Historically, the crypto market experiences phases of correction before a strong recovery. With the next Bitcoin halving approaching (April 2025), the overall crypto market cap is expected to rebound as bullish momentum returns.

DeFi, gaming, and AI-based tokens continue to gain traction, setting the stage for an altcoin-driven rally once risk appetite returns.

Conclusion
A short-term pullback to the $969 billion support level is highly probable, after which a strong bullish reversal is expected. Long-term investors might see this dip as a buying opportunity, anticipating a rally towards the upper boundary of the channel (above $2 trillion) as macroeconomic and institutional factors align in favor of crypto.

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Transaction en cours

toward the pointed area

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Note

so close to the critical area!

we should wait until the price touch the static level of total2! where I pointed!
if the price comes back from the bottom line of the channel, we can enter the crypto coins again; if not, the cryptoes will dump more!