Author: Ciaran Lyons, CoinTelegraph; Compiler: Baishui, Golden Finance
Crypto traders who closely monitor three technical indicators say the altcoin market is currently in an "incredible phase" and may soon enter an "explosive rebound phase" if history repeats itself.
Crypto analyst Mikybull Crypto told their 66,600 X followers in a post on May 11: "The altcoin market cap is currently in an incredible phase, which historically has been followed by an explosive rebound."
The skepticism phase refers to investors remaining skeptical despite positive market signs, as reflected by the Crypto Fear and Greed Index's sharp drop of 24 points in the past 30 days. The "Greed" score is currently 56.
According to TradingView, the total altcoin market capitalization (excluding the top 10 cryptocurrencies) has fallen 17.55% over the past 30 days to $264.9 billion.
Nevertheless, cryptocurrency trader Rekt Capital told their 465,300 followers on May 12 that it remains above the $250 billion support level and is “positioning for future upside.”
Over the past 30 days, the total altcoin market capitalization has fallen 17.55%. Source: TradingView
Traders are watching three indicators of the broader cryptocurrency market — the 20-day exponential moving average (EMA), the Stochastic Relative Strength Index (RSI), and Bitcoin dominance — to support their predictions on the direction of the altcoin market.
The EMA is the average price over the entire period, with more recent periods weighted more heavily. Anonymous crypto trader Titan of Crypto said in a May 11 post that if the total crypto market cap “retests” the EMA20 while also “crossing bullish” (a measure of the relative strength of the Stochastic RSI indicator itself), it could lead to “time for a rally.”
The Bitcoin dominance chart — a measure of Bitcoin’s market share relative to the entire cryptocurrency market — is one of the oldest yet most cited indicators. It can provide traders with a glimpse into overall investor sentiment and risk appetite in the market.
At press time, Bitcoin’s dominance was 54.7%, down 0.56% from the past week. Anonymous technical analyst Yoddha claimed in a May 11 X post that “Further declines from here could kick off the alt season.”
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