When will the altcoin market start?

The launch of the altcoin market requires three aspects of preparation:

1. Positive volume and price signals

Before the rising market starts, it is necessary to see the strength conversion of buying and selling.

From the perspective of volume and price, many altcoins have begun to show this signal.

Take the inscription leader $ORDI as an example. ORDI broke through the long-term supply line after Trump was elected, but it continued to fall from November 12 to 14, which shows that there were a lot of floating chips in the market at that time and the selling was relatively strong. However, on November 20, the falling transaction volume decreased significantly, indicating that the selling was obviously weaker, and yesterday's rebound was significantly greater than the decline on the 20th, indicating that ORDI's buying has begun to be stronger than the selling.

2. A large amount of funds flowed into altcoins

In fact, the supply of stablecoins has continued to increase steadily and rapidly after Trump was elected. The supply of stablecoins has increased by more than 13 billion US dollars since November 6. However, when Bitcoin continued to rise strongly, liquidity mainly flowed to Bitcoin, and the amount flowing into the altcoin market was negligible.

Bitcoin's pullback may be the time for funds to flow into altcoins.

Bitcoin has already shown obvious short-term overbought signals: daily volume-price divergence + RSI top divergence. After breaking through 100,000, there is a high probability of a sharp pullback (possibly more than 15%).

In addition, although Bitcoin's market share has set new highs, it has also seen RSI top divergence twice in a row, showing an obvious peak signal, so it is likely to fall in the future, and the altcoin market will be relatively strong.

This sharp pullback has dual significance for the altcoin market. On the one hand, LTH will take the opportunity to distribute a large amount and release more liquidity; on the other hand, the relative strength of altcoins will attract these funds to flow into the altcoin market.

3. Market sentiment

And this week, ETH/BTC has seen the first weekly RSI bottom divergence in the past five years, which is an obvious bottom reversal signal. In the next few weeks, ETH/BTC is likely to rebound sharply, and the corresponding $ETH will rise strongly, breaking through the high point in March.

Driven by the strong rise of $ETH, the altcoin market will also start.

Therefore, the altcoin market is likely to explode after a sharp correction in Bitcoin (probably within two or three weeks). Now is just the darkness before dawn. As long as we can get through it, we will usher in the harvest season.