According to the foremost cryptocurrency analyst, Crypto Tony, we are at the beginning of the altcoin depression stage. Tony debunked other accounts that said altcoins are posting a reversal and advised users to ignore them.
The depression stage is just beginning. Don’t be fooled by a few accounts saying #Altcoins are reversing now ‼️
Unfollow them and learn the realistic analysis. So we have
– $ETH / $BTC : The Altseason chart compares the strength of Ethereum against Bitcoin and currently we… pic.twitter.com/p6TkSGhyc2
— Crypto Tony (@CryptoTony__) September 10, 2023
Tony referred to the Wall Street Cheat Sheet, a famous description of the psychology of the market cycle, in explaining the current market situation. Based on the Cheat Sheet, the depression stage is when many participants tend to give up on the potential of their investments, with the assumption that all is lost. It usually comes towards the end of the bear market before prices begin to pick up.
Tony further explained the current market situation using additional indicators, including Ethereum’s strength against Bitcoin, the altcoin market cap, Bitcoin’s dominance, and the dollar index. Tony noted that by comparing Ethereum’s strength against Bitcoin, the altseason chart shows that the market is still bearish.
Using the Total3 data as an indicator, Tony noted that altcoins have the potential to go lower before initiating a bullish reversal. That is due to the existing bullish sentiment of the overall altcoin market cap. Tony further indicated that Bitcoin’s dominance is still bullish, and until that changes, the altcoin rally would wait. According to the analyst, altcoins’ lows would be confirmed after the Bitcoin dominance structure reverses.
Considering the dollar index, Tony noted that a strong dollar mitigates the growth of the crypto market. Hence, he noted that the dollar is strong at the moment, and until the situation reverses, the crypto market would not see a rebound.
The altcoin market has endured a protracted bearish season across its multiple phases. Entering the depression stage implies the market has passed through complacency, anxiety, denial, panic, capitulation, and anger. It signifies that the market is closer to the end of the bear season than the beginning. However, Tony emphasizes that contrary to popular opinion, there is still some bearish momentum in the market before a total turnaround.
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