The Altcoin market capitalization (TOTAL2) has been blown away by more than $400 Billion in the past two weeks, causing many investors to go from profit to loss. All the profits from the past month's uptrend have been wiped out, is there still hope for the Altcoin Season?
Here is a summary and notes from BeInCrypto on the views of industry experts on the recent sharp decline.
Also Read: Crypto market capitalization down 10% since FED rate hike
Altcoin Capitalization Drops to Support Zone, Signaling a Potential Strong Recovery
Although the Altcoin capitalization has been blown away by more than $400 Billion, dropping from over $1,600 Billion to around $1,200 Billion, the subsequent reaction has been quite positive. TOTAL2 has quickly regained its footing, returning above $1,400 Billion. From a technical perspective, TOTAL2 has just undergone a normal price behavior, which is a drop to support and a strong recovery.
Fluctuations in TOTAL2 capitalization. Source: TradingView.This recovery reaction provides the basis for many forecasts expecting Altcoins to resume their uptrend from December. Some industry experts have also expressed similar optimism.
"The market is recovering strongly, and I think it's highly likely that we've seen the correction, or are close to finishing it. From here on, get ready for a wonderful 2025. The journey with Altcoins will be truly brilliant." - Michaël van de Poppe, Co-Founder of MN Capital commented.
The renowned market trader il Capo Of Crypto sees the recent capital withdrawal as an opportunity to "buy the Dip". Although many Altcoins have returned to last month's prices and still need another uptrend to regain their December highs.
"Local Dip has likely formed or is about to happen. I've been waiting for this market correction, so now I'm buying. Currently, I've allocated 40% of my capital to the market, and I plan to buy more at key levels or when I see bullish signals on the lower timeframes. Facing uncertainty, conviction is the ultimate advantage." - Investor il Capo Of Crypto shared.
Bitcoin Dominance (BTC.D) Rises Again, But May Soon Correct
Bitcoin Dominance (BTC.D) has just had two strong weeks of increase and has even touched 60%. However, from the perspective of Benjamin Cowen - Founder of Into The Cryptoverse - this move may be similar to the 2021 period.
Bitcoin Dominance (BTC.D) is the proportion of Bitcoin's market capitalization in the total market capitalization. A decrease in BTC.D is a good sign for the Altcoin Season and vice versa.
Fluctuations in Bitcoin Dominance (BTC.D). Source: Benjamin Cowen"In the previous cycle, we saw a slight BTC dominance decline in November of the Halving year, before a final spike up in December into early January. Perhaps history is repeating itself?" - Benjamin Cowen commented.
From this perspective, BTC.D may be entering its final spike up towards the end of 2024 before a strong decline in early 2025. Cowen's suggestion also aligns with many forecasts that the Altcoin Season will continue to make a stronger comeback in 2025.
Also Read: 3 Altcoins That Could See Major Dumps in Late December
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