Altcoin recovery is on the way

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As an experienced analyst, I’ve seen my fair share of market downturns in the crypto space. The recent plunge in Bitcoin and the subsequent dumping of altcoins must have left many investors with a bitter taste in their mouths. Those who held onto their altcoin positions are likely sitting on significant losses, and the temptation to sell and cut their losses is strong.

The plunge of Bitcoin into a deep slump undoubtedly instilled fear among cryptocurrency investors. When Bitcoin takes a hit, so do most other digital coins. Lately, Bitcoin experienced a correction of approximately 23%, but several altcoins have dropped by more than half. However, there’s hope for recovery on the horizon.

Altcoin holders under water

As a crypto investor, I can tell you that the experience of retail investing or trading in cryptocurrencies is marked by a constant undercurrent of uncertainty, punctuated by exhilarating bursts of excitement. The recent market downturn with bitcoin and altcoins taking a hit must have instilled fear and doubt even in the most seasoned of us.

For those who haven’t yet sold their altcoins, it’s highly probable that they’re holding losses, and the temptation to sell and cut their losses may be strong for quite a few individuals right now.

An altcoin bottom in sight

If bitcoin drops to the $50,000 level, there’s a risk that altcoins may experience additional declines. But take heart – both altcoins and bitcoin are currently hitting rock bottom.

Total 3 charts the market capitalization of all the cryptocurrencies, excluding $BTC and $ETH. As can be seen in this chart, the price is holding at $600 billion, with the upsloping bull market trend line offering support below this. If we are to see a bounce, this would be a very good place for it to take place.

Altcoins about to take some dominance from BTC?

In simpler terms, altcoins were not only depreciating against the US dollar but also falling behind bitcoin. This trend reached a significant point where bitcoin accounted for over 57% of the total cryptocurrency market. However, it seems that this dominance could weaken even more since bitcoin’s 57% resistance has been rejected, and its price chart shows an upsloping wedge, which is typically more prone to collapse than rise.

Get your positions in early

For those with a delicate constitution, investing in altcoins can be a daunting experience. However, if these digital assets begin to rebound – a possibility within the upcoming days or week – early entrants into the market stand to reap substantial rewards.

As a crypto investor, I’ve been closely monitoring some alternative coins (altcoins). Recently, I’ve noticed that their weekly Stochastic RSI has hit a bottom. This technical indicator suggests that these coins have reached an oversold level and could be due for a rebound. When the Stochastic RSI crosses back above 50 on the upside, it may signal the beginning of a new bullish trend, so keep an eye out for potential fireworks in the altcoin market.

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2024-05-01 18:07