More and more people around the world are increasing their interest in cryptocurrencies, and the activity in the crypto asset markets is increasing accordingly. However, the risks brought by these rapid increases and sudden price increases should not be ignored. Santiment, a well-known crypto analysis firm, warns in its latest analysis that the market could be heading towards a significant corrective move.
of Santiment to the report According to the social media platform X (Twitter), conversations about altcoins have increased in the last few days. According to the company, especially towards the end of last week, the use of terms such as “alt”, “altcoins” and “altcoin” increased significantly. This may indicate that investors are increasingly enthusiastic about altcoins and that there is movement in the market.
According to data from Santiment, the crypto total market cap has increased rapidly (+5.9%) and trading volume has also increased significantly (+65.4%) in the last week. However, the reasons behind this upward trend should be examined carefully. Increased interest in altcoins as prices rise can be interpreted as a sign of greed. Excessive enthusiasm and rapid rises in markets can often indicate a period of correction or pullback.
Additionally, Santiment’s analysis shows that Bitcoin (BTC) and altcoins have witnessed upward bursts since October. However, it is noted that the signs of greed and excessive enthusiasm seen during this period increase the risk of a pullback in the market.
“Bitcoin’s +13% price increase last week has investors speculating about the widely anticipated $50,000 and numerous new support and resistance milestones. Ironically, once these price levels were breached, altcoins flipped the script with the crowd extremely focused on the BTC price during the opening hours of the weekend. Throughout the bull cycle that started in October, the trend was as follows:
- Bitcoin enjoys isolated rally, crowd dominates BTC
- Profits distributed to altcoins, the crowd became greedy
- Bitcoin will experience a slight pullback, the altcoin season will end much more harshly.
This weekend should be watched to see how the crowd reacts to this 2nd step in the cycle and whether open interest levels begin to increase in speculative altcoins. If so, step 3 will probably come quickly.”
NEWS CONTINUES BELOW
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