Despite recent selling pressure in the market, Aptos (APT) and Bittensor (TAO) have managed to hold steady in a double bottom formation. As Bitcoin dominance plays a crucial role, what does the future hold for these two altcoins?
Despite recent selling pressure, APT and TAO have maintained their double bottom formation, a classic technical pattern that often signals a potential trend reversal.
Earlier this week, both tokens managed to bounce off this key support level, hinting at a potential recovery. However, broader market correction brought them back to retest this crucial support zone.
A key factor influencing the movement of these tokens is the dominance of Bitcoin (BTC.D), which dictates capital flows in the cryptocurrency market. The relationship between BTC dominance and altcoins performance will be essential in determining if APT and TAO can maintain their current support or face further downside.
The movement of BTC dominance is now a decisive factor for the next phase of the altcoin market. BTC dominance rebounded on both the 50-day moving average (MA) and the ascending coin support, rising from 61.34% to 62.17%.
As BTC dominance nears its resistance line, two scenarios are possible:
BTC.D will need to drop below the moving average at 61.3% to reignite hopes for altcoins.
The coming days will be crucial in determining whether the altcoin market can regain strength or continue its downward trend. Traders should closely monitor BTC dominance levels to spot signs of a potential market sentiment change.
Furthermore, TOTAL3 still does not indicate a potential major increase in altcoins. As long as TOTAL3 fails to stay above its 200-day moving average (MA), it is poised for a more pronounced drop, at least into the demand zone at 640 billion dollars.
The dynamics of Bitcoin dominance will be crucial for the future of Aptos (APT) and Bittensor (TAO). If BTC’s dominance fails to break its resistance, a rebound in altcoins could be expected, providing an opportunity for these two tokens to resume their upward trend. However, a bullish breakthrough in BTC dominance could once again weigh on the performance of APT and TAO. Informed investors will closely follow the evolution of these key indicators to grasp the next market trends.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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