A prominent crypto analysis firm has warned that the digital asset market could be witnessing a correction.
Santiment said on social media platform X that interest in altcoins has increased in recent days amid the overall market rally.
According to the analytics firm, mentions of the terms “alt”, “altcoin” and “altcoin” in social media chatter increased sharply by the end of last week, suggesting traders are booming. It is said that there is
“Interest in altcoins has also increased this week as crypto market caps have skyrocketed (+5.9%) and volumes have surged (+65.4% week-on-week). This has occurred at a time when prices are rising. If so, it could be a sign of greed.”
The analytics firm also notes that the broader crypto market appears to be following a bullish trend that began in October, the month when Bitcoin (BTC) and altcoins began their meteoric rise.
With signs of greed emerging in the market, Santiment warns that a retracement for Bitcoin and altcoins may be near.
“Bitcoin’s +13% price increase over the past week has led traders to speculate on a number of new support and resistance milestones, with $50,000 widely expected. Ironically, these prices The altcoin reversed the scenario in the opening hours of the weekend as the crowd became unduly focused on the BTC price after breaking above the level.Here are the trends of the entire bull cycle that started in October.
- Bitcoin enjoys isolated pump, crowd favors BTC
- Profits will be distributed to altcoins and the crowd will be greedy
- Bitcoin will fall gently and the alt season will end more dramatically.
Watch this weekend to see how the crowd reacts to the second step of this cycle and whether open interest levels in speculative alternatives start to rise. If so, step 3 may occur immediately. ”
At the time of writing, Bitcoin is trading at $48,196, up 1.41% in the past 24 hours.
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