- According to a renowned crypto analyst, a new trend is forming in the altcoin market.
- The analyst spotted a developing Golden Cross on the AltcoinMarketCap monthly chart.
- Golden Cross has happened only twice in the history of the altcoin market.
A renowned cryptocurrency analyst with the handle @el_crypto_prof on X (formerly Twitter) has alerted users to a forming trend in the altcoin market. According to the analyst, this event has only happened twice in the history of the cryptocurrency market, delivering similar outcomes on both occasions.
According to @el_crypto_prof, an imminent ‘golden cross’ is developing on the monthly AltcoinMarketCap chart. The analyst shared a screenshot of the chart, noting that the notable signal is about to form within a few days before the month ends.
By description, a golden cross occurs when a short-term moving average crosses over a long-term moving average. Traders use this formation to identify the beginning of a bullish trend. Also, forming on a higher time frame, like the monthly chart, gives more credence to the reliability of the indicator.
The crypto analyst noted the previous times the Golden Cross occurred on the AltcoinMarketCap chart were in 2016 and 2020. In both situations, the indicator triggered significant rallies in the altcoin market. Hence @el_crypto_prof’s suggestion that there could be a repeat of a similar development in the altcoin market.
Multiple excited responses followed @el_crypto_prof’s post from other traders who seemed to agree with his prediction. However, one of the respondents noted that considering the Fed’s interest rate hiking cycle and liquidity cycle, he intends to be bullish for the beginning and middle of 2024 and bearish on altcoins after that.
As of the time of writing, the value of the AltcoinMarketCap, representing the total market capitalization of all cryptocurrencies excluding Bitcoin, was $657 billion. The metric has risen in the past two months, rising from $529.8 billion since the beginning of October. The AltcoinMarketCap reached an all-time high during the 2021 bull run, when its value rallied to $1.707 trillion, according to data from TradingView.
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