A trader connected the purchase signal on the “Altcoin buy signal” chart to the points at which Bitcoin was trading just before a six-month price explosion.
A well-known cryptocurrency trader said that he thought cryptocurrencies would be in a prime accumulating phase, citing a buy signal that has yet to occur at this low point in over three years.
In a post on August 28, cryptocurrency dealer Luke Martin informed his 331,500 X followers that “Altcoins are currently at the ‘ sell your house to buy more’ level.”
Based on past data, the “alts buy signal” chart notifies traders when the altcoin market as a whole is at a buy.
According to Martin, the price of Bitcoin BTC$59,635 doubled in the second half of 2020 from its summertime peak.
“Over the following six months, the price went vertical from 10,000 to 60,000,” Martin stated.
The “altcoin market cap is forming a falling wedge pattern, a bullish continuation pattern,” noted anonymous cryptocurrency trader Mags.
According to TradingView, the entire market capitalization of altcoins is $195.07 billion as of this writing. Michael van de Poppe, the founder of MN Consultancy, noted in an August 25 X post that it is “still 47% down from the highs.”
November 2021 saw the cryptocurrency market cap reach its pinnacle of $446.85 billion.
Mags continued, “Breakout will trigger a nice upside rally.”
Toncoin (TON), one of the top ten cryptocurrencies, has dropped the most in the last seven days, falling 15.31% to $5.57 after Telegram CEO Pavel Durov was arrested in France on August 24.
Since Bitcoin’s all-time high of $73,679 in March, several altcoins have decreased sharply from their year-to-date highs.
According to CoinMarketCap data, Solana’s price has decreased by 29% to $143.20 from its peak in March, while XRP’s price has decreased by 19.7% to $0.57 from its year-to-date high over the same period.
With a “Fear” score of 29, the Crypto Fear & Greed Index indicates that investor sentiment in the cryptocurrency industry is still generally cautious. Seven days ago, the indicator scored 39, but now it is down 10 points.
Over the last seven days, the dominance of Bitcoin has decreased by 0.12% to 57.20%. Benjamin Cowen, the founder of Into The Cryptoverse and a crypto analyst, feels that 60% may mark the height of Bitcoin domination, and that number is not far off.
“My goal for Bitcoin dominance has been 60%, and I don’t think it is going back up to 70%,” he says.
