The cryptocurrency market has experienced sharp declines recently. However, the latest analysis by Blockchain Backer suggests that the downtrend is likely over, especially in the altcoin market when looking at weekly and medium-term timeframes. Here are the details…
Analyst gave hope for the altcoin market
The analysis emphasizes the importance of the concept of “togetherness”, where multiple indicators come together to measure market trends. Past examples, such as the expectation that Bitcoin will reach $12,000, illustrate the role of emotions in market sentiment. Looking back, the strength of major altcoins such as altcoin Ethereum and XRP since June confirms previous market bottoms and indicators.
While further declines are expected, there are signs that the market is acting similarly to past recoveries. Long conversations about a completed supercycle in 2021 and a corrective course of action were also observed during this period. Retail investor behavior during this recovery included increased risk-taking, particularly in meme coins.
What does market behavior indicate?
Similar to past cycles, many familiar signals have emerged indicating the market is bottoming, the analyst says. On the other hand, as the market approaches higher levels, worrying signals also emerge along with an increase in retail investor confidence. He mentioned the difficulty of assessing current conditions due to the historical time frames and market structures observed in altcoins such as XRP. Comparing the years 2013-2017 with recent years, he noted that market expansions generally followed similar phases of consolidation and recovery.
The analyst also points to examples where major market rallies in the past followed similar structures, with big gains in 2017. When he looks at today’s market, he sees mixed signals and uncertainty, especially about how much risk investors are taking and the number of people buying different types of assets. He says it’s crucial to watch for signs that investors are ready to take on more risk and more people are becoming interested in trading. Historically, these signs have come just before major changes in the market.
It expresses the thought that even though things are complicated and unpredictable right now, if the right things happen soon, we could be on the verge of something big. This analysis does not provide a clear answer as to whether the cryptocurrency market is in recovery or not. Rather, it aims to guide the reader with the evaluations of experts. Although it is difficult to accurately predict market movements, you can make more informed investment decisions by learning from past cycles. As Kriptokoin.com, we always report that every investor should do their own research instead of blindly believing in analyst predictions.
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