Is Altseason Approaching Analyst Issues Serious Warning Advising for Reversal of Trend
The burning question on everyone’s lips right now is whether altcoins will stage a comeback and embark on an upward trajectory in the days to come.
According to the analysis provided by the Wolves of Crypto team, Bitcoin recently encountered resistance, resulting in a moderate 5-6% decline. While this dip is noteworthy, it is not substantial. However, the impact on altcoins was much more severe. In the past week, Bitcoin has seen a 2% increase, but most of the top 100 altcoins have experienced significant drops, with many plunging by double digits, ranging from 10% to 21%.
Ethereum, the frontrunner in the altcoin market, saw a 6-7% decrease during the same timeframe. This drop exceeded that of Bitcoin and reflects the ongoing trend of underperformance among altcoins. The overall altcoin market cap, excluding Bitcoin and Ethereum, witnessed a 10% decline, indicating a more drastic effect on altcoins.
The analyst highlighted that Ethereum’s breach below a crucial support level since May 21 leaves altcoins vulnerable to further declines if Bitcoin continues its downward trajectory. To shift back to a bullish stance, the market must reverse its current course.
In line with historical patterns, the analyst suggested that altcoins are poised to rebound shortly. He illustrated that the altcoin market cap chart typically follows a recurring five-step sequence: hitting a low point, rebounding, consolidating, and then surging to new record highs.
Furthermore, he emphasized that a decrease in Bitcoin dominance typically signals the beginning of an altcoin season. Traditionally, this occurs after the fourth consolidation phase. If this pattern persists, we may anticipate an altcoin season and a steep upward trend for altcoins in the near future, akin to the developments observed in 2017.
Moreover, he delved into the invalidation thresholds for the current market trends. Should Bitcoin fall below $66.8k, it would raise concerns, but dropping below $61k would signify a significant shift in the trend. For the altcoin market, a weekly candle closing below the bull market support range on the total cryptocurrency market cap chart would be the initial indication of invalidation. Breaching these levels would suggest that the current bullish trend has come to an end.
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