Analysts Predict Upcoming Altcoin Rallies Following Bitcoin’s Price Movements

Analysts Anticipate Altcoin Surge Aligned with Bitcoin's Fluctuations

Despite Bitcoin's recent dip below $58,000, analysts offer varying perspectives on market trends. While some experts consider Bitcoin's sustained closing above $57,000 as a positive sign, others speculate on the timing of altcoin recovery. Three prominent cryptocurrency analysts address the uncertainties that altcoin investors are grappling with.

When Will Altcoins Resurrect?

Analyst "Moustache" analyzes Bitcoin's market dominance chart in relation to historical cycles. He suggests that the BTC.D metric is poised to weaken, supported by historical data. Moustache highlights the year-long downward trend in BTC.D, stating:

"BTC.D remains in a one-year downtrend. Fluctuations are anticipated. The three-week MACD has not yet signaled a reversal, but once it does, I expect an altcoin surge akin to 2017 and 2021. Patience is paramount, but the returns can be significant."

Analyst "Kyledoops" emphasizes volume data as a critical factor in altcoin recovery. Reduced spot volume indicates that buyers (bulls) have been dormant, leading to market volatility caused by speculative selling. Kyledoops asserts that the downtrend has not fully reversed.

"Spot trading volumes, scaled using a 90-day MinMax scaler ranging from 1 to -1 based on the period's maximum and minimum values, continue to lose momentum. This decline highlights a substantial reduction in trading activity over the past quarter."

Role of Dogecoin (DOGE)

Large-cap altcoins like Dogecoin (DOGE) play a pivotal role in driving the broader altcoin recovery. Recent upward movements in XRP Coin and other major cryptocurrencies offer encouraging signs, but sustained momentum is essential. Analysts recommend monitoring assets like DOGE to gain valuable insights.

Analyst "Tardigrade" believes that DOGE is positioned for a breakout due to a rise in its Relative Strength Index (RSI) indicator. Combined with optimism for the upcoming quarter (which has less than 20 days remaining), this provides a potentially favorable scenario for investors.