Prominent Crypto Analytics Firm Warns of Potential Correction in Altcoin Market
A leading crypto analytics firm, Santiment, is cautioning that the digital asset markets could be on the brink of a corrective move. Santiment notes that interest in altcoins has surged in recent days alongside a marketwide rally. The firm observes a sudden increase in mentions of “alt,” “altcoins,” and “altcoin” on social media platforms towards the end of last week, indicating signs of exuberance among traders.
Altcoin Interest Rises as Crypto Market Shows Bullish Trend
Santiment also highlights that the broader crypto markets have been following a bullish trend that started in October. This was when Bitcoin and altcoins began experiencing upward bursts. With signs of greed emerging in the markets, Santiment warns that a period of retracement could be on the horizon for Bitcoin and altcoins.
The Cycle of Bitcoin Pumps and Altseasons
Santiment outlines a pattern observed throughout the current bull cycle. It starts with Bitcoin experiencing a pump, which leads to dominance in the market. Then, profits are distributed into altcoins, resulting in increased greed among traders. Subsequently, Bitcoin retraces mildly, causing altseason to end more drastically. Santiment advises monitoring how the crowd responds to this second step in the cycle and whether speculative altcoins see a rise in open interest levels.
Bitcoin Price and Market Update
As of now, Bitcoin is trading at $48,196, representing a 1.41% increase in the last 24 hours.
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