Signals that Altcoins may be entering the “dead cat bounce” phase

The market started to record green again after a sharp decline that caused large liquidations and caused many Altcoin investor portfolios to almost Chia in half. However, some signs show that this recovery could become a new "trap".

The following are records and assessments of Altcoin Capital fluctuations, from BeInCrypto.

Technical signals on the Altcoin Capital chart indicate the possibility of a “dead cat bounce”

“dead cat bounce” is a price behavior in technical analysis that describes a recovery in a downtrend that is no different from the bounce of a “dead cat”. With the implication, a dead cat is also dead, bouncing does not confirm that it is resurrected. Just as a downtrend has begun, the recovery does not confirm that prices will rise again.

Observing the fluctuation of Altcoin (TOTAL2) Capital , some technical signals supporting the dead cat bounce scenario are as follows:

• The pair EMA34 and EMA89 in the Sonic R indicator showed signals confirming a downtrend in the 12-hour frame. This time frame could give predictive validity for at least the next month. EMA34 has crossed below EMA89 for the first time in nearly 6 months in an uptrend. TOTAL2's Capital recently recovered to EMA89 at the $1,000 billion area like the Dead cat bounce price behavior before plummeting again.
• TOTAL2 Capital fluctuation between 1,200 billion USD - 1,100 billion USD is the area for the best Altcoin liquidation , shown by the Volume Profile indicator. But TOTAL2 in April left this large liquidation zone, price behavior will tend to look for the next largest liquidation zone in the past, which is the area of ​​720 billion USD - 800 billion USD.

With this technical perspective, it is likely that Altcoin's green color this week will not last long. Altcoins may continue to fall again.

Many Altcoins may return inside the long-term accumulation zone in the near future

If we only observe Altcoin Capital fluctuations without mentioning the TOP10 (OTHERS), some bad signals predicting a downtrend have just been confirmed.

• Observing the fluctuations of OTHERS's Capital , we can see the biggest weekly decline in the past 2 years. Along with this decline, the MACD-H indicator of OTHERS on the weekly frame has confirmed a negative signal that predicts the possibility of further decline in the coming months, or at least not yet able to increase back to the peak.
• Technical measurements suggest the possibility of OTHERs Capital returning to support of $165 billion in the next month. If this happens, it means that any Altcoin that has risen far from the two-year accumulation zone will return to support at the boundary of the accumulation zone, and any Altcoin that has just escaped the accumulation zone may return to the inside of the zone. this accumulation.

Looking further ahead, this drop could cause the long-term sentiment cycle pattern of Altcoins to be XEM . But at the same time, many investors can buy new potential Altcoins of 2024 at better prices than Q1/2024.

Also Read: Top top exchanges to buy/sell Altcoin

What do you think about the above Altcoin Capital assessments and predictions? Chia your opinion now in our community Telegram chat | Telegram channel | Facebook fanpage .