- According to crypto analysts, the altcoin market beyond Bitcoin is currently in a state of disbelief. However, hold onto your hats, because if history is to repeat itself, this skepticism could soon pave the way for a significant surge.
- This intriguing prediction is based on a concept known in the cyclical nature of the crypto market as the “disbelief stage”. As recently shared by analyst Milkybull Crypto, it is observed that investors remain hesitant at this stage despite positive indicators.
- The evidence here comes from the Fear and Greed Index, a popular sentiment meter. Over the past month, the score has dropped a significant 24 points to reach the current “Greed” reading of 56. This fundamental bullish trend seemingly contradicts price movement.
Analysts predict an imminent explosion in the altcoin market, based on historical patterns and key technical indicators. Stay tuned for an exciting period in the altcoin space.
Milkybull: Altcoin Market Set to Explode
According to TradingView data, the total market value of altcoins, excluding the top 10 heavyweights, has dropped by 17.55% over the last 30 days to currently stand at $264.9 billion. However, there is a glimmer of hope. This pullback did not breach the critical support level of $250 billion, indicating a potential springboard for future gains. As pointed out to his large following by analyst Rekt Capital, this positioning is signaling an upward move in the near future.
Catalysts for Market Explosion
So, what are the catalysts for this potential altcoin explosion? Investors are closely monitoring 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 smooths out price fluctuations by giving more weight to current data points. Titan of Crypto believes that “rally time” could come if the total crypto market value retests the 20-day EMA and simultaneously crosses into the “bullish” zone on the Stochastic RSI, which measures the strength or weakness of price movements.
Bitcoin Dominance and Altcoin Season
The Bitcoin dominance chart, a time-tested indicator reflecting Bitcoin’s market share compared to the entire crypto market, provides valuable insights into investor sentiment and risk appetite. Currently, Bitcoin is in a dominant position at 54.7%, despite a slight decline last week. Analyst Yoddha suggests that further decline from here could trigger an “altcoin season”, a period when altcoins outperform Bitcoin.
Conclusion
It’s important to remember that these are predictions based on historical patterns and technical analysis. The crypto market is inherently volatile, and unforeseen events can disrupt even the most meticulously prepared forecasts. However, the current “disbelief stage” 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. But for those closely following the altcoin space, the coming weeks could be an exciting period.
