The new data shows that the bearish trend is easing as investors expect a Q4 recovery. In particular, 3 altcoins are regaining the confidence of investors after a multi-month downtrend.
Traders are returning to these 3 altcoin projects
The cryptocurrency market has been following a downward trajectory since the start of 2022. Market sentiment was generally pessimistic and the bulls lacked strength. However, new data shows that investor sentiment has reversed. This leads to expectations that the market will soon revive.
Current on-chain reports provided by Santiment revealed a positive trend in investor sentiment as of October 20. Investors have particularly high expectations for Bitcoin (BTC), Binance Coin (BNB), Ripple (XRP) and Cardano (ADA).
Among these 4 cryptocurrencies, Bitcoin had a weighted sensitivity of 0.52. The largest altcoin, Ethereum, is one of the prominent names on the list, although a little more pessimistic. However, the continuing negative and bearish sentiment wanes as investors keep their year-end expectations high. Santiment noted that investor sentiment indicators for BTC, BNB, XRP, and ADA are all positive, while ETH is slightly bearish:
However, as investors expect a recovery here in the 4th quarter, the persistent negativity and decline subsided. BTC, BNB, XRP, and ADA all show the crowd rising, while ETH is only slightly bearish.
How close are we to new heights?
Bitcoin has been consolidating below the $20,000 zone since early October. This keeps investors’ hopes alive that current levels are bottoming out. This expectation is in line with the latest forecast by Bloomberg analyst Mike McGlone, who expects a potential rally in Q4. As you follow on Kriptokoin.com, the senior analyst recently updated his 100,000 predictions.
McGlone argued that Bitcoin’s ability to hold its ground in the face of the latest Fed rate hike is bullish proof. Meanwhile, according to Kevin Svenson, a crypto researcher who studies historical movements, Bitcoin expects April 2023. In the past, Bitcoin’s bull runs followed the rest of the cryptocurrency market. However, due to connected network activity, coins like XRP are in a bullish trend.
Meanwhile, XRP is evaluating the positive developments in the ongoing lawsuit between the SEC and Ripple with a rally. Ripple scored a few minor victories over the SEC last month. XRP price ended this development with a 40% rally.
Despite historic rise, Ethereum still in the red
Interestingly, even though the merge has been completed for a month, there is a negative prevailing around Ethereum. Specifically, the update is predicted to have a long-term impact on Ethereum, after the event proved to be a “buy the rumor, sell the news” case.
Overall, the cryptocurrency market has slumped as a result of the Fed tightening its measures to combat runaway inflation. To prevent the economy from falling into a recession, many market participants believe the Fed will likely delay tightening.
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