Altcoins are now ready for a bullish market cycle after a long period of bearishness. The current phase is equivalent to a shakeout, where the weaker hands are pushed out, leaving room for potential upside. The monthly Relative Strength Index (RSI), which has comfortably settled within the bullish zone, is an important confirmation of this bullish zone.
Besides, TOTAL2, which stands for all altcoins’ market cap excluding Bitcoin, has pushed above the 9-day EMA on the monthly chart, indicating some relative strength in other coins. Indeed, expectations and rumours are high with four days remaining before Bitcoin halving.
Crypto analyst Alex Clay has marked a planned downturn in the market capitalization of altcoins. This decline aligns with expectations. There is a coordinated move to regain lost ground by overcoming the previously breached support confluence. Nonetheless, there is a threat of a negative retest in this area. This suggests an impending hurdle for altcoins as they attempt to recover from their recent setback.
Strategic Investment Tips for Altcoin Downturn
In addition, another prominent crypto analyst, Mags, has provided insights into the trajectory of altcoin prices. Feeling concerned about the recent drop in altcoins? It’s quite customary to witness dips like these during a bullish market phase. Historically, prices have continued rising until they reach their peak, typically around 500 days after a Bitcoin halving event. Rather than succumbing to panic and hastily selling off assets, leveraging these downturns to your advantage is prudent.
Hold onto your investment, find some strong projects & narratives and enter those positions strategically during such dips using the DCA (Dollar Cost Averaging) Approach. Accept volatility, which is inherent in crypto trading as a basic market phenomenon. If you anticipate a substantial return, such as a +1000%, mentally prepare yourself for corrections of -20-30%.
Anticipating a Rebound: Ethereum’s Lower Support Zone Test
The analyst has also highlighted the ETH/BTC pair questioning the “Altseason” start. Their analysis shows that a real rally in altcoins might begin once Ethereum starts outperforming Bitcoin.
Looking at the ETH/BTC chart, we can see it breaking out of its downtrend on RSI (Relative Strength Index). At present, RSI is testing breakout point for second time due to recent market crash.
Additionally, there’s a bullish divergence on RSI, and the price is testing the lower support zone of the channel. As a result, a significant rebound is anticipated shortly. Those who don’t think Ethereum has much potential are in for a rude shock. Ethereum is perhaps mature in the crypto world, but its importance cannot be undermined.
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