Market experts predict an imminent market rebound for altcoins, suggesting current low valuations could signal the start of a major recovery.
For several weeks, the crypto market has been enveloped in a cloud of negativity amid the ongoing market-wide downturn led by Bitcoin. The development has created an atmosphere of FUD among crypto investors, where participants have increasingly become disinterested in the market.
Crowd Fearful Amid Bitcoin Lows
Recent insight from market intelligence platform Santiment confirms this trend, stressing that the crowd has become fearful while Bitcoin traded around the $65K range. However, the latest market data shows Bitcoin has further crashed to the $62K range today, intensifying the negative sentiment.
🫣 The crowd is mainly fearful or disinterested toward Bitcoin as prices range between $65K to $66K. This extended level of FUD is rare, as traders continue to capitulate. BTC trader fatigue, combined with whale accumulation, generally leads to bounces that reward the patient. pic.twitter.com/WMy3lbdjEB
— Santiment (@santimentfeed) June 20, 2024
Specifically, BTC has witnessed a decline of over 12% from the monthly peak of $71,900 on June 7. This decline has significantly impacted altcoins, causing many to retest their yearly lows as investor sentiment remained bearish.
Negative Crowd Sentiment Signals End of Dip
According to Santiment, extreme negative sentiment in the market has historically signaled that a bottom is near. This starkly contrasts the peaks of positive sentiment driven by FOMO, which usually mark market tops.
Essentially, the current wave of pessimism could lay the groundwork for a significant recovery. Moreover, Santiment emphasized that the blend of trader fatigue and whales’ quiet asset accumulation suggests the market is primed to rebound.
Other independent market watchers have also voiced similar outlook about an impending rebound, drawing from historical observation.
Altcoins Set for Major Recovery
In a recent analysis, analyst Michaël van de Poppe argued that the depressed valuations of altcoins in relation to Bitcoin echo historical trends that have previously led to explosive comebacks.
He cited historical instances with prominent cryptocurrencies including Solana (SOL) soared by over 500% following a similar bearish occurrence in the past. Moreover, the analyst highlighted that Fetch.ai (FET) also engineered a 650% rise, while Render (RNDR) achieved a 300% increase during the same period.
Accordingly, Van de Poppe argued that altcoins will likely establish a similar path once the ongoing bearish trend cools off. Essentially, his insight suggests the current depressed valuations of altcoins might be the start of a bottoming phase before the much-anticipated altcoin season.
This chart explains it all. The #Altcoin sentiment is terrible currently, as the BTC valuations of all the altcoins are reaching new lows.
The last time this happened:$SOL went +500%$FET went +650%$RNDR went +300%
This time, altcoins are likely to do the same. pic.twitter.com/KYpzPqwDKV
— Michaël van de Poppe (@CryptoMichNL) June 22, 2024
In an earlier update, Van de Poppe proposed that the market is in the final stages of its downward movement, with just a few weeks left before a significant market rotation begins.
Increasing his risk level to various assets, Van de Poppe anticipates the emergence of a massive rally that rewards risk-takers in the current market situation.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
