Altcoins Poised for Bullish Market Cycle: Analysts Predict Upside Potential
Altcoins are now gearing up for a bullish market cycle after a prolonged period of bearishness. This current phase is being likened to a shakeout, where weaker hands are being pushed out, paving the way for potential upside. The monthly Relative Strength Index (RSI) settling comfortably within the bullish zone serves as a key confirmation of this positive trend.
Moreover, TOTAL2, which represents the market cap of all altcoins excluding Bitcoin, has surged above the 9-day EMA on the monthly chart, indicating some relative strength in other coins. With just four days left before the highly anticipated Bitcoin halving, expectations and rumors are running high in the crypto space.
Renowned crypto analyst Alex Clay has identified a planned downturn in the market capitalization of altcoins, aligning with expectations. While there is a coordinated effort to regain lost ground and overcome previously breached support levels, there remains a looming threat of a negative retest in this area. This poses a potential hurdle for altcoins as they strive to recover from recent setbacks.
In light of these developments, strategic investment tips have been shared by another prominent crypto analyst, Mags. Rather than panicking and hastily selling off assets during downturns, it is advisable to hold onto investments, identify strong projects and narratives, and strategically enter positions using the Dollar Cost Averaging (DCA) approach. Embracing volatility as a fundamental aspect of crypto trading and mentally preparing for corrections is crucial for maximizing returns.
Looking ahead, Ethereum’s lower support zone is being put to the test, with the ETH/BTC pair playing a pivotal role in determining the start of an “Altseason.” Analysts have highlighted a breakout in the RSI of the ETH/BTC chart, with a bullish divergence and price testing the lower support zone of the channel. This sets the stage for a significant rebound in the near future, underscoring the importance of Ethereum in the crypto landscape.
As the market gears up for potential growth and recovery, investors are advised to stay informed, exercise caution, and seize opportunities presented by market fluctuations. With the crypto space buzzing with anticipation, the stage is set for an exciting period ahead.
