Author: Ciaran Lyons, CoinTelegraph; Translated by: Tao Zhu, Golden Finance
A prominent cryptocurrency trader believes that altcoins may be in a golden accumulation phase, noting that a buy signal at such low prices has not been triggered in more than three years.
“Altcoins are at ‘sell your house and buy more’ levels right now,” crypto trader Luke Martin told his 331,500 X followers in an Aug. 28 post.
The last time an Alts buy signal came 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 in a buying mode based on historical data.
When Bitcoin last reached this level, in the summer of 2020, the price rose sixfold in the second half of the year, Martin said.
“The price went straight up from 10k to 60k over the next 6 months,” Martin wrote.
Meanwhile, anonymous crypto trader Mags noted that “altcoin market capitalization is forming a falling wedge pattern, which is a bullish continuation pattern.”
According to TradingView, the total altcoin market cap is $195.07 billion at the time of this article’s publication. MN Consultancy founder Michael van de Poppe highlighted in an August 25 X post that it is “still down 47% from its highs.”
The altcoin market capitalization peaked in November 2021 at $446.85 billion.
Cryptocurrency trader Mags points out that altcoin market capitalization may be undergoing a major shift. Source: Mags
“A breakout would trigger a nice upside rally,” Mags added.
Among the top ten cryptocurrencies, Toncoin (TON) has seen the biggest drop over the past seven days, falling 15.31% to $5.57 following the arrest of Telegram CEO Pavel Durov in France on August 24.
Other altcoins have also experienced significant declines since their year-to-date highs in March, when Bitcoin hit an all-time high of $73,679.
Data from CoinMarketCap shows that Solana’s price has fallen 29% to $143.20 since its March peak, while XRP’s price has fallen 19.70% from its year-to-date high to $0.57 over the same period.
Overall, investor sentiment towards the cryptocurrency market remains cautious, according to the Crypto Fear & Greed Index, which has a “fear” score of 29. The metric is down 10 points from its “fear” score of 39 seven days ago.
Meanwhile, Bitcoin’s dominance has slightly decreased by 0.12% over the past seven days to 57.20%. It’s not far from 60%, which Benjamin Cowen, a cryptocurrency analyst and founder of Into The Cryptoverse, believes could peak Bitcoin’s dominance.
“I don’t think it’s going to go back to 70%, my target for Bitcoin dominance is 60%,” he explained.
