As the market cycle unfolds, altcoins are trading at critical levels that, if lost, could trigger deep declines. In today’s update, we’ll take a closer look at the broader market landscape to assess whether momentum is shifting and what that could mean for the weeks ahead.

Additionally, we’ll analyze key macroeconomic factors to offer a well-rounded outlook on what’s next for altcoins.

Here’s what we’ll cover today:

Let’s dive in!

Altcoins remain out of favor with investors during times of global market uncertainty, and the charts reflect this clearly. Both TOTAL3 and OTHERS, the primary altcoin indexes we use to gauge market conditions, continue to follow their respective downtrends that began in December of last year. After rejecting at key resistance levels, both indexes have now formed new lower highs. OTHERS has already retraced all of the gains made during last year’s end-of-year rally, while TOTAL3 still has roughly 20% room to fall before reaching the same point.

Bullish Scenario: In a bullish case, we’d like to see both indexes reclaim their next higher respective support levels. For TOTAL3, that would mean reclaiming the major key area at 780B, and for OTHERS, it would mean reclaiming 240B. It’s important to note that such a move would likely not mark a full market structure shift or the end of the broader downtrend just yet. That would require both indexes to push higher and establish new highs, above 850B for TOTAL3 and above 270B for OTHERS.

Bearish Scenario: In a bearish case, we’d expect both indexes to extend their ongoing trends lower. Given the recent formation of lower highs, a continued move down could bring new lower lows. For TOTAL3, initial support sits at 716B; if that level fails, we’d be looking at a possible continuation toward 640B. For OTHERS, first support is around 180B, with a potential move down to 160B if that doesn’t hold.