Altcoin ‘euphoria’ phase starts once the market price increases by 16% – trader
Before the start of the euphoric altcoin period, the total market capitalization of altcoin should increase to 16% from its current level. Until then, the volatility will continue, as a crypto trader.
Anonymous crypto trader Daan CryptoTrades wrote in a post on December 28, 2010 that the “Euphoria” or “Mania” level should start once TOTAL3 – the total market value of all cryptocurrencies excluding Bitcoin (BTC) and Ether (ETH) – He said it was bigger than that. 2021 entered an all-time high of $1.13 trillion and price discovery.
The euphoria level will not start until it breaches the TOTAL3 2021 ATH.
According to TradingView data, TOTAL3 is currently worth $962.78 billion. It is up approximately 91.45% since January 1st.
“As long as this sells for between ~$840B and ~$1.1T, I think it's going to be dark,” Dan said.
The total market cap, excluding Bitcoin and Ether, is currently $962.78 billion. Source: TradingView
He said he would be “a little more cautious” if TOTAL3 fell below $800 billion.
Some analysts believe that the overall crypto market has become more volatile as traders take a more short-term view than in previous years.
“Everybody suddenly decided they were the George Soros of this cycle, tracking hourly charts with timed entries/exits and playing skillfully,” said Daniel Cheng, founder of Syncracy Capital, in a Dec. 28 X post.
Cheng said this is why they don't see crypto-tokens “as fast as previous cycles.”
Traders are starting to turn to altcoins
According to CoinMarketCap data, the top three gainers among the top 100 cryptocurrencies in the last seven days are Bitget Token (BGB) with an 80.65% increase, Virtual Protocol (Virtual) with a 42.30% increase, and Pudgy Penguin (PENGU) with a 31.63% increase.
Related: AI tokens market cap down 28% from December $70B peak
Meanwhile, with Bitcoin's dominance returning to around 60% in the last few days of 2024, the price may be stagnating, and traders' confidence is growing that it may be time to shift their accumulation strategy to altcoins.
“Altcoins, at this time, offer excellent R/R [Risk Reward] profile rather than Bitcoin,” said anonymous crypto trader Dime in a December 27 post.
“The lead time to DCA Bitcoin is over for another 1.5+ years,” Dyme said.
Magazine: Bitcoin payments are being undermined by a centrally stable coin.
