Altcoins
Will the epic altcoin boom of 2017 happen again soon? Indicators have aligned for something huge
Is the market already recovering from its lows? Various indicators across different timeframes, from weekly to medium-term, have suggested that the market has probably exhausted its downtrend, as highlighted in the latest analysis by Blockchain Backer.
The last discussion highlights the importance of confluence, where multiple indicators align, to gauge market trends. Historical examples, such as the anticipation of Bitcoin hitting $12,000, illustrate the role of emotions in market sentiment. Looking back, previous market lows and indicators validate the current analysis, showing strength in major altcoins such as Ethereum and XRP since June.
Despite widespread expectations of further declines, signs were that the market was behaving similarly to past recoveries. The prolonged talk in 2021 of a completed super cycle and corrective style were also observed. Retail behavior during this recovery included increased risk-taking, particularly evident in meme coins.
Market Behavior Signals
The analyst said that many familiar signals had appeared that the market was bottoming out, similar to past cycles. On the other hand, as the market approached higher levels, worrying signals emerged, coinciding with a surge in retail investor confidence.
He spoke openly about the challenge of assessing current conditions, especially in altcoins like XRP, given the historical timeframes and observed market structures. Comparing the cycles from 2013 to 2017 and recent years, he noted that market expansions typically follow similar phases of consolidation and recovery.
Comparison of historical cycles
The analyst also pointed to past patterns where large market rallies followed similar structures, such as the epic altcoin boom of 2017 with its huge gains. Looking at today’s market, he saw a mix of signs and uncertainties, particularly in how risky investors feel and how many are buying different types of assets.
He said it’s important to watch for signs that investors are ready to take more risk and that more people are getting involved in trading. Historically, these signs have occurred right before big changes in the market. While things are complicated and unpredictable right now, he thought we could be on the cusp of something big if the right things start happening soon.