Anticipation of Powerful Altcoin Rally Amid Market's 'Disbelief Phase', Analysts Suggest
Summary:
The altcoin market currently stands at a phase of "disbelief" that often precedes a strong rally, suggest crypto analysts. Despite a drop in the Fear and Greed Index and a 17.55% decrease in the overall altcoin market cap over the past month, traders are looking to indicators like the 20-day exponential moving average, the Stochastic RSI, and Bitcoin's market dominance to predict the future direction of the altcoin market. A further decline in Bitcoin's prevailing 54.7% dominance could potentially trigger an "altseason".
Currently, the altcoin market finds itself in a phase of "disbelief", a stage frequently succeeded by a powerful surge, as predicted by crypto enthusiasts keeping an eye on three key indicators for affirmation. Crypto expert, Milkybull crypto, proclaimed to his audience of 66,600 X followers that the market for altcoins is at a disbelief stage which tends to be followed by an intense rally. The disbelief stage is characterized by investor skepticism, in spite of affirmative market signals, as demonstrated by a significant plunge of 24 index points in the Fear and Greed Index over the previous month, resulting in a "Greed" score of 56.
The cumulative altcoin market cap, which omits the top 10 cryptocurrencies, is approximately $264.9 billion, a 17.55% reduction over the last month, according to TradingView data. Despite the downtrend, it continues to maintain above the $250 billion threshold and is positioning for a potential future ascent, as per crypto market player Rekt Capital campaign to his 465,300 X followers.
Crypto traders are observing three broad crypto market parameters - the 20-day exponential moving average (EMA), the Stochastic RSI, and Bitcoin's prevalence - to help validate their conjectures about the altcoin market's trajectory. If the total market cap of cryptocurrencies retests the EMA20 and turns bullish on the Stochastic RSI, it could be a precursor to a noticeable rally, as posited by Titan of Crypto, a crypto trader.
Bitcoin's market prominence, in relation to the entire crypto market, is among the earliest and most relied upon indicators, showing the overall investor sentiment. As of now, Bitcoin's supremacy stands at 54.7%, reflecting a 0.56% slump over the preceding week. If there's further drop from this point, it can trigger an "altseason", as per the claim by technical analyst Yoddha.
Please note, the information in this article is not a solid investment guide or recommendation. Investing and trading always carry some degree of risk, and it is recommended that readers conduct their own detailed research before making any decisions.
Published At
5/12/2024 8:13:25 AM
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