The altcoin market has been experiencing a prolonged trend due to bearish pressure, and some experts have seen the prospect of a trend reversal for altcoins.
However, renowned crypto analyst @CryptoTonyo disagrees with their opinion and advises investors to ignore these statements. He stated that the altcoin market is now on the verge of a depression.
Loading...
According to Coinedition, CryptoTonyo based his predictions on the Wall Street Cheat Sheet, which contains a description of the psychology of the market cycle and explains the current situation on the market at any given time. According to this guide, the depression phase comes when the majority of investors are ready to give up on possible future returns, believing that all is lost. Such a moment occurs most often towards the end of a bear market, before prices begin to rise.
SgurtoTopuo assessed the market situation at this moment using additional indicators, including the strength of Ethereum relative to Bitcoin, altcoin market capitalization, the dollar index, and the Bitcoin dominance indicator. The analyst concluded that the market is still bearish.
According to the expert, altcoins still have room to lower their prices before starting a bullish reversal. This is due to the existing pressure on altcoins. Bitcoin's dominance is still bullish, and until this dominance changes, altcoins will not show a price rally. The decline in altcoin levels will stop once Bitcoin's dominance pattern changes.
The dollar index, which characterizes the strength of the dollar, also confirms that the rise of the dollar is holding back the growth of the crypto market. And as long as the dollar strengthens, the cryptocurrency market should not expect a recovery.
Entering the bearish phase means that the market is nearing the end of the bearish season, but at the same time, there is still some bearish momentum in the market before a full reversal.
Read also: Bybit announces $NEXT prediction draw.