In a new analysis that has caused volatility in the cryptocurrency community, renowned crypto analyst Crypto Tony issued a stern warning. According to the analyst, the altcoin market is currently at the beginning of the depression phase. This is a stage in the market cycle where many participants are beginning to lose hope in the potential of their investments. Here are the details…
Analyst commented on the altcoin market
Crypto Tony’s assessment flies in the face of some optimistic accounts that suggest altcoins are on the verge of a reversal. It urges traders to be cautious and not get caught up in the early bullish sentiment. Crypto Tony draws on the famous “Wall Street Cheat Sheet,” a psychological road map of market cycles, to back up his claim. According to this paper, the depression phase typically occurs towards the end of a bear market, just before prices begin to recover.
The depression stage is just beginning. Don’t be fooled by a few accounts saying #Altcoins are reversing now ‼️
Unfollow them and learn the realistic analysis. So we have
– $ETH / $BTC : The Altseason chart compares the strength of Ethereum against Bitcoin and currently we… pic.twitter.com/p6TkSGhyc2
— Crypto Tony (@CryptoTony__) September 10, 2023
One of the hallmarks of the depression phase is that investors often feel that all hope is lost, leading many to abandon their investments. This feeling can be contagious and create a gloomy atmosphere in the market. Crypto Tony points to various indicators to support his argument, such as the strength of Ethereum relative to Bitcoin, total altcoin market cap, Bitcoin’s dominance, and the strength of the US dollar.
Ethereum performance is critical
Ethereum’s performance against Bitcoin is a very important indicator for altcoin enthusiasts. Crypto Tony states that the altcoin season chart is still bearish based on this metric. While there is optimism, the overall picture remains bleak. Analyzing the Total3 data, Tony suggests that altcoins could drop further before the bullish reversal. This observation is in line with the prevailing bullish sentiment regarding the overall altcoin market cap. Tony emphasizes that a reversal in Bitcoin’s dominance structure is necessary to confirm the lows in altcoin prices. Tony also highlights the impact of the US dollar on the cryptocurrency market. A strong dollar could hinder the growth of the crypto market. Currently, the dollar remains strong.
Crypto Tony believes that the crypto market may continue to struggle until there is a change in this dynamic. The altcoin market’s journey through the various stages of the bear market has been a difficult one, spanning apathy, anxiety, denial, panic, resignation and anger. The onset of the Depression phase indicates that the market may be closer to the end of the bearish season than at the beginning. However, Crypto Tony is adamant that contrary to popular belief, there is still room for bearish momentum before a full reversal occurs. In conclusion, Crypto Tony’s warning about the depression phase of the altcoin market serves as a cautionary note to investors.
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