Altcoins Displaying Bearish Signal Amidst Widespread Crypto Market Rally, Cautions Analytics Firm Santiment
Santiment, an esteemed crypto analytics firm, is warning that the digital asset markets could be on the cusp of witnessing a corrective move. The firm notes that interest in altcoins has surged in recent days amidst a marketwide rally. According to Santiment, mentions of terms such as “alt,” “altcoins,” and “altcoin” on social media platforms have suddenly spiked, hinting at trader exuberance.
The analytics firm further suggests that the broader crypto markets appear to be following a bullish trend that began in October, with Bitcoin and altcoins experiencing upward surges. However, with the markets displaying signs of greed, Santiment warns that a period of retracement may be looming for Bitcoin and altcoins.
Santiment outlines the typical pattern observed throughout the current bull cycle: Bitcoin witnesses a significant price hike, leading traders to become predominantly focused on BTC. Profits from Bitcoin then flow into altcoins, leading to increased greed among traders. Finally, Bitcoin experiences a mild retracement, while altseason abruptly ends.
Santiment urges the monitoring of how the crowd responds to the second step in this cycle over the weekend, particularly whether open interest levels rise for speculative altcoins. If so, Santiment predicts that the third step in the cycle will likely come quickly.
As of writing, Bitcoin is trading at $48,196, reflecting a 1.41% increase in the last 24 hours.