Market analysts are keeping a close eye on several key indicators that point to the beginning of an altcoin upswing.
The first of these is the 20-day exponential moving average (EMA), which is crucial for tracking recent price movements and timing a potential rally. A bullish crossing of the 20-day EMA in the #cryptocurrency market indicates that a rally may be imminent.
Another important indicator is the stochastic RSI, which evaluates the strength or weakness of the Relative Strength Indicator (RSI) over a period of time. If this indicator shows a bullish crossover, it suggests that the altcoin is preparing for significant price volatility.
According to crypto trader Titan of Crypto (pseudonym), if the total cryptocurrency market volume "retests" the EMA20 and a bullish crossover of the stochastic RSI indicator at this time, it could lead to "rally time.
When the total cryptocurrency market volume meets these two conditions:
1ȃ EMA20\uD83D\uDD34 retest.
2 Stochastic RSI crosses the bullish field on the weekly timeframe.
In addition, bitcoin's market share, as measured by its dominance, provides insight into investors' overall sentiment and risk appetite.
Currently, #bitcoin has a market share of 52.92%. The decline in this indicator may indicate that investor interest has shifted to #altcoins and that the altcoin season has begun.
Rekt Capital traders note that despite this decline, the market is still above the $250 billion support level, indicating that it is positioning itself for future growth.
Experts are mixed on the altcoin's potential, with some analysts predicting that the market could reach US$4 trillion when the biggest altcoin begins.
However, other analysts, such as Benjamin Cowen, point out that current market conditions do not indicate that altcoin is coming soon, and believe that bitcoin can continue to dominate the market in the long term.
Altcoin season index. Source: blockchaincentre.
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