Hunting Underbought Altcoins: The Quest of Crypto Traders

Hunting Underbought Altcoins: The Quest of Crypto Traders

Traders’ enthusiasm for buying crypto dips has waned as uncertainty surrounding macro developments and ongoing US debt ceiling negotiations persist, while altcoins are flashing underbought signals and some analysts suggest it’s time to accumulate them.

Over the last few weeks, the broader digital currency market has come under selling pressure with Bitcoin (BTC) and some top crypto altcoins heading lower. There is many of uncertainty surrounding the macro developments and the ongoing United States debt ceiling negotiations.

On-chain data provider Santiment shows that traders’ enthusiasm for Buy the Dips has waned amid dip opportunities becoming more realistic. It noted:

We are seeing the common paradox of traders buying short-term, small # cryptocurrency price dips, but scared to buy the longer-term bigger ones. Mentions of #buythedip or #boughtthedip are dormant. Historically, this kind of #FUD has been good to capitalize on.

On the other hand, it seems that Bitcoin (BTC) miners have continued to add throughout the 30 days of May. Data from Glassnode shows that post the implosion of the FTX Trading Ltd cryptocurrency exchange, miners have expanded their balance sheet by 8,200 Bitcoins with their total holdings now moving closer to 80K BTC.

Similarly, during the 30 days of May, Bitcoin (BTC) miners raked in a total of 12.9 Bitcoin in mining bonus per block. Only for the fifth time in history, the Bitcoin (BTC) miner fee revenue has surpassed the subsidies.

Hunting Underbought Altcoins: The Quest of Crypto Traders
Courtesy: Glassnode

Crypto Altcoins Flash Underbought Signals

Although while the Bitcoin (BTC) price persists to remain under selling pressure, traders’ attention has now shifted to crypto altcoins. Santiment reported:

With markets seeming dull to traders, we’re continuing to see restless addresses emptying their wallets and selling at a loss. Our MVRV model, signifies the vast bulk of # crypto altcoins are flashing underbought indicates across the sector.

Hunting Underbought Altcoins: The Quest of Crypto Traders
Courtesy: Santiment

Several of the other trending cryptocurrency market traders are likewise stating that the time to buy crypto altcoins is now. Trending cryptocurrency analyst and EightGlobal founder Michael Van De Poppe recently tweeted:

For crypto altcoins, the time to accumulate them has come. 1 year before the halving -> time to buy those positions. Reached an important level here, which is likewise approx. 1 year before the halving.

Several crypto altcoins like Litecoin (LTC) are already showing strength. Before the present retracement, the LTC price surged over $90 in a positive  tendency momentum driven by the following halving event.


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