Analyst Predicts End of Correction and Altcoin Rally

Crypto market correction short-lived; altcoin surge expected, says analyst.

The current correction in the cryptocurrency market will be short-lived, according to the analyst known as Crypto Dan. He asserts that significant growth in altcoins typically occurs during periods of extreme market overheating—at the end of a bull phase.

The Correction Won’t Last Long

“The current crypto market appears to be in a relatively small correction phase, and a strong surge in altcoins is likely to occur alongside intense overheating at the end of the cycle.” – By @DanCoinInvestor pic.twitter.com/0Asr6rLcWd

— CryptoQuant.com (@cryptoquant_com) October 28, 2025

The expert noted that capital inflow and trading activity help identify the concluding phase of the cycle. For instance, the massive liquidity in the market in the first quarter of 2021 signaled its imminent end.

According to Crypto Dan’s observations, in March 2024, the capital inflow was weaker than in 2021. The current level of market overheating is also lower than in previous instances. 

The cryptocurrency market is experiencing a moderate correction. A noticeable rise in altcoins may coincide with intense overheating at the end of the cycle, the expert concluded.

Data from Glassnode shows that the distribution of Bitcoin purchase costs by investors has formed support around $111,000 and significant supply around $117,000.

This range defines the standoff between recent buyers and traders taking profits. A breakout in one direction could set the course for the next major price movement.

A New Rally?

Funding rates on Binance have turned positive again, which may indicate the start of a new upward trend for Bitcoin. This was highlighted by CryptoQuant analyst Burak Kesmeci.

Analysis of data over the past six months has revealed two clear patterns:

• the shift of rates into negative territory often coincides with the end of local Bitcoin price corrections or approaching the bottom;
• the return of the indicator to positive territory generally precedes the start of a short-term upward trend.

“Funding rates on Binance act as a leading indicator of short-term trend reversals,” concluded Kesmeci.

The analyst noted that since October 22, 2025, the metric has remained in positive territory. In his view, this indicates renewed support for Bitcoin’s growth in both spot and derivatives markets. This could suggest the formation of a foundation for the asset’s next rally.

Whales Resume Bitcoin Accumulation

Analysts at Swissblock have recorded an increase in the accumulation of digital gold among large holders. In September-October, there was an outflow of coins from centralized exchanges to their wallets.

Whales are reloading.

Accumulation has increased during September–October, with BTC flowing from exchanges into whale wallets.

They’re accumulating into strength, positioning strategically ahead of the next potential leg higher.https://t.co/Xv9NhjexTT pic.twitter.com/Khl58n4t1M

— Swissblock (@swissblock__) October 28, 2025

Experts believe that large players are strategically positioning themselves in anticipation of the next growth phase.

Short-term holders (STH) have also joined the accumulation, increasing their investments in the leading cryptocurrency. Meanwhile, long-term investors (LTH) continue to distribute assets by selling coins.

Swissblock described the situation as a rotation of capital. Funds are flowing from LTH to whales and short-term holders.

CryptoQuant experts added that the Bitcoin price has exceeded the realized price of “new whales” at $112,788.

This group of investors, holding about 1.14 million BTC, no longer bears unrealized losses. Analysts consider this an important psychological shift for the market.

Back in October, Swissblock specialists stated that digital gold needs to maintain the support level of $114,000 to continue the rally to new highs.