The altcoin market is currently in a “disbelief stage,” which, if past cycles are any indication, will soon transition into an “explosive rally,” according to a trader known as Mikybull.
#Altcoins market cap is currently at the disbelief stage, historically followed by an explosive rally.
Historically, the marked-up consolidation has made huge gains (2016 &2020). pic.twitter.com/x4NDs6RslU
— Mikybull ?Crypto (@MikybullCrypto) May 11, 2024
“Historically, the marked-up consolidation has made huge gains (2016 and 2020),” the expert added.
The disbelief stage is a phase where investors remain skeptical despite positive market indicators. The cryptocurrency fear and greed index is at 56, indicating a decline in bullish sentiment. Over the past month, the index has dropped by 24 points.
During the same period, the OTHERS indicator, which tracks the market capitalization of all cryptocurrencies except the ten largest, fell by 17.55% to $264.9 billion.
Analyst Rekt Capital noted that the metric maintains support at $250 billion, “preparing for a future move upwards” to $425 billion.
Altcoin Market Cap is still holding the $250bn well as support, positioning itself for a future move to the upside via the black pathway#BTC #Crypto #Bitcoin https://t.co/vPorkjHqem pic.twitter.com/0rLdxhFeL1
— Rekt Capital (@rektcapital) May 11, 2024
Besides OTHERS, experts are monitoring three other metrics: the 20-day exponential moving average (EMA20), stochastic RSI, and Bitcoin dominance index.
Trader Titan of Crypto predicted an imminent rally, as the altcoin capitalization index retested the EMA20, and the stochastic RSI “shifted to bullish” on the weekly timeframe.
When the Crypto Total Market Cap fulfills these two conditions:
1⃣ Retest of the EMA20 ?.
2⃣ Stochastic RSI crosses bullish on the weekly timeframe.➡️ It’s rally time for the crypto market. ? pic.twitter.com/FK5SjPBwSa
— Titan of Crypto (@Washigorira) May 11, 2024
Over the past week, the dominance index of the leading cryptocurrency decreased by 0.5%. At the time of writing, the figure stands at 54.75%.
Technical analyst Yoddha shared his forecast, suggesting the index will reach 57%, after which it will decline, ushering in an altcoin season.
I shared this plan back in 2023 and it’s being followed perfectly
BTC.D went above 55% and made a high of 57%
A fall from here can start an Altseason pic.twitter.com/ZWyuQMWcIa
— Yoddha (@CryptoYoddha) May 11, 2024
Previously, experts at Santiment highlighted signs of a potential altcoin rally, indicated by Ethereum’s transaction fees dropping to a six-month low ($1.12).
Back in the summer, analyst PlanB predicted the onset of an altcoin season, followed by a correction in the third quarter.