Altcoins are showing a bearish signal amid a broad crypto market rally, analyst firm Santiment warns
A well-known crypto analysis firm warns that digital asset markets could be on the verge of a corrective move.
Santiment says on social media platform X that interest in altcoins has increased in recent days amid a market-wide rally.
According to the analytics firm, mentions of the terms “alt,” “altcoins,” and “altcoin” on social media spiked by the end of last week, suggesting that traders are showing signs of exuberance.
“With total cryptocurrency market capitalization skyrocketing this week (+5.9%) and volume surging (+65.4% week-on-week), interest in altcoins has increased.” If this happens while If prices rise, it can be a sign of greed.”
Source: Santiment/X
The analytics firm also says the broader crypto markets appear to be following an uptrend that began in October – the month in which Bitcoin (BTC) and altcoins first saw bullish breakouts.
As markets show signs of greed, Santiment warns that a period of retracement could be on the horizon for Bitcoin and altcoins.
“Bitcoin’s 13% price increase over the past week has traders speculating on numerous new support and resistance milestones, with $50,000 widely expected. Ironically, when these price levels were exceeded, altcoins flipped the script in the opening hours of the weekend as the crowd became too focused on the price of BTC. The trend during the bull cycle that started back in October was:
- Bitcoin is enjoying an isolated upswing, the crowd is becoming BTC dominant
- Profits are distributed in altcoins, the crowd becomes greedy
- Bitcoin is declining slightly, the alt season is ending much more drastically.
Watch to see how the crowd reacts to this second step in the cycle this weekend and whether open interest in speculative alternatives begins to increase. If so, step 3 will probably come quickly.”
At the time of writing, Bitcoin is trading at $48,196, up 1.41% in the last 24 hours.
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