Altcoins ‘Sell Your House’ Amid Impressive Buy Signals, Says Trader
A prominent crypto trader believes altcoins may be in a major accumulation phase, which has not triggered a buy signal in over three years.
“Altcoins are currently in the ‘sell your house' phase,” crypto trader Luke Martin told his 331,500 X followers on August 28.
The last time an alts buy signal was close to this level was in January 2021. Source: Luke Martin
The “Alts buy signal” chart provides traders with an indication of when the overall altcoin market is buying based on historical data.
Martin said that while Bitcoin (BTC) was at the end of this phase, its price increased sixfold in the second half of the year in the summer of 2020.
“The price was vertical from 10k to 60k in the next 6 months,” Martin wrote.
Meanwhile, the pseudonymous crypto trader Magz says that “the altcoin market cap is forming a falling wedge pattern, which is a bullish continuation pattern.”
At the time of publication, the total market cap of the altcoin is $195.07 billion according to TradingView. “Still down 47% from peak,” MN Advisors founder Michael Van de Pop highlighted in an August 25 X post.
In November 2021, the altcoin market peaked at $446.85 billion.
Crypto trader Mags has pointed out that there is a big change in the Altcoin market capitalization. Source: Mags
“Breakout will trigger a good upside rally,” Maggs added.
Among the ten major currencies, Toncoin (Ton) posted the biggest decline in the last seven days, which was announced on August 24 by French Telegram CEO Pavel Durov.
Other altcoins have seen steep declines since March year-to-date highs, which coincided with Bitcoin's all-time high of $73,679.
Related: ‘No Clear Trigger' for Bleeding as Top Altcoins Fall Double-Digit
The price of Solana (SOL) has fallen by 29% to $143.20 since reaching its peak in March, while XRP (XRP) is up 19.70% to $0.57 from $0.57, according to CoinMarketCap data.
Overall, investor sentiment in the crypto market remains cautious, according to the Crypto Fear and Greed Index, “Fear” has a score of 29. The index is down 10 points from a “fear” score of 39 seven days ago.
Meanwhile, Bitcoin Dominance is down 57.20% in the last seven days by a measly 0.12%. It is not far from 60%, which crypto analyst and founder of Cryptoverse Benjamin Cowen believes that it can be high for the supremacy of Bitcoin.
“I don't think it will go back to 70%, my target for Bitcoin dominance was 60%,” he explains.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
