The total market capitalization of altcoins needs to increase by about 16% from current levels before the fun altcoin season begins. Until then, volatility will continue, according to one cryptocurrency trader.
Daan Crypto Trades, a pseudonymous cryptocurrency trader, said in a post on December 28 that if TOTAL3, the total market capitalization of all cryptocurrencies except Bitcoin (BTC) and Ethereum (ETH), exceeds that figure, a “euphoria” or “mania” phase will occur. said it should start. It will hit an all-time high of $1.13 trillion in 2021 and enter price discovery.
The Euphoria phase will not begin until TOTAL3 breaches the 2021 ATH.
According to TradingView data, TOTAL3 is currently worth $962.78 billion at the time of publication. It has increased by approximately 91.45% since January 1.
“I think it’s going to be choppy as long as it’s trading between ~$840B and ~$1.1T,” Daan said.
Currently, the total market capitalization excluding Bitcoin and Ethereum is $962.78 billion. source: TradingView
He said he would be “a little more cautious” if TOTAL3 falls below $800 billion.
Some analysts believe the overall cryptocurrency market has become more volatile as traders adopt a more short-term outlook than before.
“Everyone has suddenly decided they are George Soros this cycle and is constantly monitoring hourly charts to time their entry/exit and utilize leverage,” Daniel Cheung, co-founder of Syncracy Capital, said in a post dated December 28. .
Cheung said this is why cryptocurrency tokens are not breaking out “as quickly as in previous cycles.”
Traders are starting to pivot into altcoins.
According to CoinMarketCap data, the top three gainers among the top 100 cryptocurrencies over the past seven days are Bitget Token (BGB), up 80.65%, Virtuals Protocol (VIRTUAL), up 42.30%, and Pudgy Penguins (PENGU), up 80.65%. I did it. Up 31.63%.
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Meanwhile, with Bitcoin dominance restored to nearly 60% amid price stagnation in the last few days of 2024, there is growing belief among traders that it may be time to shift accumulation strategies to altcoins.
“At this point, altcoins offer a much more optimal R/R (risk-reward) profile than Bitcoin,” anonymous cryptocurrency trader Dyme added in a post on December 27.
“DCA Bitcoin has at least 1.5 more years left,” Dyme said.
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