In the early hours of Monday, a significant downturn hit the cryptocurrency market. Major assets like Bitcoin (BTC) and Ethereum (ETH) were affected. Bitcoin showed bearish daily Relative Strength Index (RSI) and a potential shift towards an altcoin-dominated market.
Bearish Sentiment Surges
According to Coinglass’s recent market data, over $354 million in long crypto traders were liquidated in the past 24 hours, implying a growing bearish sentiment. There was a recent bullish pennant pattern in Bitcoin, which had many anticipating a surge to $48k, only to witness a downturn toward $40k.
Regulatory crackdown adds pressure
Despite the ongoing crypto regulatory crackdown in the United States, market experts maintain short-term optimism, anticipating the approval of several spot crypto exchange-traded funds (ETFs).
Altcoin Enthusiasm on the Rise
On-chain analytics platform Santiment has identified a noteworthy spike in social media mentions urging followers to ‘buy the dip.’ This indicates a strong community belief in the imminent recovery and growth of altcoins.
A Waiting Game for the ‘Alt Season’
The high demand from institutional fund managers for crypto investment products emerges as another factor that could sustain market optimism. The much-anticipated ‘alt season‘ may materialize in the coming weeks, propelled by a redistribution of crypto cash flow from Bitcoin to the altcoin industry in line with market capitalization trends.
Which altcoins are you excited about for the holiday season?
Hot Take
The cryptocurrency market is experiencing a significant shift, with potential opportunities for altcoins on the horizon. Despite the recent downturn, the market remains optimistic about the potential rise of altcoins, indicating new opportunities for traders and investors. Keep an eye on the altcoin industry in the coming weeks for potential growth and exciting possibilities.
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