Renowned crypto analyst Cryptollica recently shared his insights on the current state of the altcoin market in a revealing X post. According to Cryptollica, Altcoin Dominance exhibits notable fluctuations, particularly when examining the Relative Strength Index (RSI) levels.
Another respected crypto analyst, Daan Crypto, shared his perspective on the market’s condition in a recent X post. According to the analyst, altcoins have experienced a substantial downturn, with losses ranging from 40% to 90% from their previous peaks. Although the decline has not been as abrupt as the COVID-19 crash, the overall impact on many altcoins has been comparably significant.
Daan Crypto pointed out that before the downturn during the COVID-19 crash, altcoins had not seen much upward movement, which contrasts with the present situation. He argues that Bitcoin and altcoins are trading at levels higher than expected for this stage of the market cycle. He emphasized that the market is still ahead of where it typically would be, considering the historical cycles.
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Source: Chart by Daan Crypto
Reflecting on the past year, the analyst noted that 2023 has been exceptionally strong for a period immediately following a bear market. This contrasts sharply with 2019, which did not see such a robust end. He drew parallels with 2020, a year that started with a significant correction but ended on a high note. This pattern could be indicative of what 2024 might hold for the market.
Daan Crypto believes that the early gains in the current cycle have led to inflated expectations. He argues that the market needs these prolonged periods of stagnation and gradual movement to align with historical trends.
As the altcoin market navigates these challenging times, insights from seasoned analysts are valuable perspectives. Their analysis reminds investors of the cyclical nature of the cryptocurrency landscape and the importance of patience and strategic planning for long-term success. Investors are encouraged to stay informed and consider these expert insights as they navigate the market’s complexities.
