Key Points
- The altcoin market is currently in the “disbelief stage,” potentially heading towards an “explosive rally”.
- Crypto traders are monitoring three indicators for confirmation of this trend: EMA over 20 days, the Stochastic RSI, and Bitcoin dominance.
The altcoin market is currently experiencing what traders refer to as the “disbelief stage.” This phase is characterized by investor skepticism despite positive market signs.
Market Indicators
A significant drop of 24 index points on the Fear and Greed Index over the past 30 days to a “Greed” score of 56 exemplifies this disbelief stage. The total altcoin market cap, excluding the top 10 cryptocurrencies, is $264.9 billion, reflecting a 17.55% decrease over the past 30 days, according to TradingView data.
Despite this, the market cap is still above the $250 billion support level, indicating potential for future upward movement.
Traders’ Predictions
Traders are closely monitoring three indicators across the broader crypto market to predict the direction of the altcoin market. These indicators include the exponential moving average (EMA) over 20 days, the Stochastic RSI, and Bitcoin dominance.
The EMA measures the average price across a period, giving more weight to recent periods. If the total crypto market cap retests the EMA20 while also crossing bullish on the Stochastic RSI, it could signal a rally.
Bitcoin’s dominance, which measures Bitcoin’s market share relative to the overall crypto market, is another key indicator. It currently stands at 54.7%, down 0.56% over the past week. If this dominance continues to fall, it could trigger an altseason.
It is important for investors to keep these indicators in mind when making decisions about their altcoin investments.
