The recent crypto market downturn has wiped out significant value from altcoins, leading to deeply negative sentiment and extreme volatility. However, traders urge patience, believing this could be a prime accumulation phase before the next major rally.
The recent downturn in the cryptocurrency market has seen altcoins lose a substantial amount of value, leading to extremely negative sentiment and deep volatility in the market. However, some traders are advising patience, as they believe that this could be a prime accumulation phase before the next major rally.
CRYPTOCAP Cruz Michael van de Poppe described the current altcoin market as “insane volatility” with “super negative” sentiment. He believes this marks the transition from old narratives dying to new narratives emerging, advising traders to hold onto utility-driven altcoins as their time is coming.
Crypto trader Osemka highlighted that Bitcoin BTC/USD closed below the 4-hour breaker but quickly engulfed it with the next candle, suggesting downside might be limited for now. The price is still respecting the diagonal breakout trend. For altcoins he sees the following trends:
Also Read: Record-Breaking Token Creation In January Raises Concerns Over Altcoin Liquidity, Market Quality
In another post, crypto analyst Miles Deutscher pointed out that altcoin open interest (excluding BTC and ETH) has dropped 50% from December highs but still remains above pre-election levels. He warned that another 50% decline could take OI back to September lows, suggesting more leverage may need to be flushed before a sustained rally.
In another X post, he describes the classic cycle psychology of altcoins. Anger is transitioning into Depression, where low interest, dull price action, and apathy dominate. This phase slowly grinds out weak hands through boredom rather than panic.
Historically, this has been the best accumulation period, as the biggest gains come when everyone else has checked out.
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