Altcoin Market Rebound Predicted Amid Current Low Valuations
Market experts are optimistic about an upcoming rebound in the altcoin market, suggesting that the current low valuations could be a signal of a major recovery. Over the past few weeks, the crypto market has been overshadowed by a negative sentiment caused by the overall downturn led by Bitcoin. This has resulted in a lack of interest from crypto investors.
The Fear Uncertainty Doubt (FUD) among investors has been evident as Bitcoin has been trading around the $65K range. However, recent market data shows that Bitcoin has further declined to the $62K range, intensifying the negative sentiment.
Bitcoin’s decline of over 12% from its monthly peak of $71,900 on June 7 has had a significant impact on altcoins. Many altcoins have retested their yearly lows as investor sentiment remained bearish.
According to market intelligence platform Santiment, extreme negative sentiment in the market historically indicates that a bottom is near. This is in contrast to the peaks of positive sentiment driven by Fear Of Missing Out (FOMO), which usually signal market tops.
The current wave of pessimism could potentially pave the way for a significant recovery. Santiment also highlighted that trader fatigue combined with whales quietly accumulating assets suggests that the market is ready for a rebound.
Other market watchers have also expressed a similar outlook, drawing from historical observations. Analyst Michaël van de Poppe pointed out that the depressed valuations of altcoins compared to Bitcoin align with historical trends that have led to explosive comebacks.
Van de Poppe cited examples of prominent cryptocurrencies such as Solana (SOL), which saw a 500% increase following a similar bearish occurrence in the past. He also mentioned Fetch.ai (FET) and Render (RNDR), which achieved 650% and 300% increases respectively during the same period.
Based on this analysis, Van de Poppe believes that altcoins are likely to follow a similar path once the current bearish trend subsides. The current low valuations of altcoins could potentially mark the beginning of a bottoming phase before the highly anticipated altcoin season.
In a previous update, Van de Poppe suggested that the market is in its final stages of the downward movement, with a few weeks remaining before a significant market rotation begins. He has increased his risk level on various assets, anticipating a massive rally that will reward risk-takers in the current market situation.
Disclaimer: This article provides informational content and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.
