Altcoins Prepare to Rally in the Shadow of Bitcoin's Recent 42% Gain

Last week Bitcoin's price action surprised the majority of the market and traders are now looking closely at altcoins to spot similarities that might signal a new altcoin market cycle.

As Bitcoin surged, China-based altcoins began to break out of their downtrend and showed some significant increases.

Altcoins like NEO rallied 101% and Ontology quickly gained 128%.Let's have a look at the altcoin market for an overview.

What would be interesting to see for altcoins would be whether the dominance chart is able to break the uptrend to the downside.

As Ether is the biggest altcoin, the chart is showing a pattern that is identical to the movements of the total altcoin market capitalization.

Asian altcoins lead the wayLast week President Xi Jinping called for China to support the development and adoption of blockchain and a serious breakout from the majority of Chinese altcoins took place.

Are altcoins ready to follow the China-based coins or is it only particularly the Chinese market that is making these movements?

From a technical perspective, multiple altcoins show signals of potential bottoming and are eager to show some movements.

Cardano broke out of the same structure as many altcoins it still lags behind the Chinese altcoins.

Given that the majority of altcoins show the same chart and generally move together, further movements of other altcoins can be expected.