According to crypto traders who closely monitor three technical indicators, the altcoin market is currently in the “disbelief stage,” which could potentially lead to an “explosive rally” in the near future if history repeats itself. Mikybull Crypto, a crypto analyst, shared this observation with their 66,600 followers on May 11. The disbelief stage refers to a period when investors remain skeptical despite positive market indicators. This skepticism is reflected in the Crypto Fear and Greed Index, which has dropped by 24 index points over the past 30 days. Currently, the “Greed” score is at 56. Additionally, the total altcoin market cap, excluding the top 10 cryptocurrencies, has declined by 17.55% in the past month to $264.9 billion, as reported by TradingView.
However, the altcoin market is still holding above the $250 billion support level and is positioning itself for a potential upward movement, according to Rekt Capital, a pseudonymous crypto trader with 465,300 followers. Traders are closely monitoring three indicators in the broader crypto market to predict the direction of the altcoin market: the exponential moving average (EMA) over 20 days, the stochastic relative strength index (RSI), and Bitcoin dominance.
The EMA calculates the average price over a specific period with greater emphasis on recent periods. If the total crypto market cap retests the EMA20 and also crosses bullish on the stochastic RSI indicator, it could lead to a rally, according to Titan of Crypto, another pseudonymous crypto trader. Bitcoin dominance, which measures Bitcoin’s market share relative to the overall crypto market, is also an important indicator. At the moment, Bitcoin’s dominance stands at 54.7%, down 0.56% in the past week. If it continues to fall, it could potentially trigger an “altseason,” as suggested by Yoddha, a pseudonymous technical analyst.
It’s important to note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risks, and readers should conduct their own research before making any decisions.