A prominent crypto trader believes altcoins may be in a peak accumulation phase, pointing out a buy signal that hasn’t occurred at such low levels in the past three years.
“Altcoins are currently at a ‘sell your house, buy more’ level,” cryptocurrency trader Luke Martin told his 331,500 followers in an Aug. 28 post.
The last time an alts buy signal came close to this level was in January 2021. Source: Luke Martin
The “Altcoin Buy Signal” chart informs traders whether the entire altcoin market is at a buy point based on historical data.
Martin said that when Bitcoin (BTC) was at these levels in the summer of 2020, the price surged sixfold in the second half of the year.
“The price went from $10,000 to $60,000 over the next six months,” Martin wrote.
Meanwhile, anonymous cryptocurrency trader Mags noted that “altcoin market caps are forming a descending wedge pattern, which is a bullish continuation pattern.”
According to TradingView, at the time of publication, the total altcoin market cap was $195.07 billion. “We are still down 47% from our highs,” MN Consultancy founder Michael van de Poppe emphasized in an August 25 X post.
Altcoin market cap hit a record high of $446.85 billion in November 2021.
Cryptocurrency trader Mags points out a potential major shift in altcoin market capitalization. Source: Mags
“The breakout would trigger a nice rally,” Max added.
Among the top 10 cryptocurrencies, TON Coin (TON) has seen the biggest decline over the past seven days, falling 15.31% to $5.57 on August 24 after Telegram CEO Pavel Durov was arrested in France.
Other altcoins have seen significant declines since their March year-to-date highs, which match Bitcoin’s all-time high of $73,679.
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According to CoinMarketCap data, Solana (SOL) price has fallen 29% since its March high to $143.20, while XRP (XRP) has fallen 19.7% from its year-to-date high to $0.57.
According to the Crypto Fear & Greed Index, overall investor sentiment in the cryptocurrency market remains cautious, with a “Fear” score of 29. This indicator has dropped 10 points from 39 seven days ago.
Meanwhile, Bitcoin dominance has slightly decreased by 0.12% over the past seven days to 57.20%. However, it is still well below 60%, and Benjamin Cowen, a cryptocurrency analyst and founder of Into The Cryptoverse, believes that this could be the peak of Bitcoin dominance.
“I don’t think it’s going to get to 70%. My target for Bitcoin dominance was 60%,” he explained.
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This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.