The altcoin market, the space of cryptocurrencies beyond Bitcoin, is currently in doubt, according to crypto analysts. But hold on to your hats, because if history is to repeat itself, this skepticism could soon pave the way for a major rally.
Milkybull: Altcoin market will explode
This intriguing prediction is based on a concept known as the “disbelief phase” in the cyclical nature of the crypto market. As analyst Milkybull Crypto recently shared with his followers, at this stage it seems that investors remain hesitant despite positive indicators. The evidence here comes from the Fear and Greed Index, a popular sentiment gauge. Over the past month the score has dropped a significant 24 points to the current reading of “Greed” (56). This underlying bullish trend seemingly contradicts the price action.
According to TradingView data, the total market value of altcoins, excluding the top 10 heavyweights, is currently at $264.9 billion, having decreased by 17.55% in the last 30 days. However, there is a silver lining. This pullback did not breach the critical $250 billion support level, indicating a potential springboard for future gains. As analyst Rekt Capital points out to its sizeable following, this positioning signals an imminent upside move.
Catalysts of the market boom
So what are the catalysts for this potential altcoin boom? Investors are carefully watching three key technical indicators in the broader crypto market: the 20-day exponential moving average (EMA), the Stochastic RSI, and, of course, Bitcoin dominance. The EMA smoothes price fluctuations by placing more weight on recent data points. Titan of Crypto believes that “rally time” may come if the total crypto market cap retests the 20-day EMA and also moves into the “bullish” zone on the Stochastic RSI (which measures the strength or weakness of price movements).
A time-tested indicator that reflects Bitcoin’s market share relative to the entire crypto market, the Bitcoin dominance chart offers valuable insight into investor sentiment and risk appetite. Currently, Bitcoin is in a dominant position at 54.7%, although it experienced a slight decline last week. Analyst Yoddha suggests that further declines from here could trigger an “altcoin season,” a period in which altcoins outperform Bitcoin.
It is important to remember that these are predictions based on historical patterns and technical analysis. The cryptocurrency market is inherently volatile, and unforeseen events can disrupt even the most carefully crafted predictions. But the current “disbelief phase” in the altcoin market, combined with these technical indicators, paints an intriguing picture of a potential breakout on the horizon. As always, do your own research before making any investment decisions. However, for those who follow the altcoin space closely, the coming weeks may be an exciting time.
To be informed about the latest developments, follow us twitter‘in, Facebookin And InstagramFollow on and Telegram And YouTube Join our channel!