A notable crypto trader has highlighted that altcoins may have reached a prime accumulation phase, with buy signals emerging at levels unseen in over three years. Luke Martin, a prominent trader, informed his 331,500 followers on X (formerly Twitter) that altcoins are currently at the “sell your house to buy more” level. This, according to Martin, could be a significant opportunity for long-term investors.
Martin referenced the “alts buy signal” chart, which provides an indication of favorable buying conditions for altcoins based on historical data. He drew a parallel to Bitcoin’s performance in the summer of 2020, when similar signals were present. During that time, Bitcoin’s price skyrocketed from $10,000 to $60,000 over the following six months.
The last time that the alts buy signal neared this level was in January 2021. Source: Luke Martin
Similarly, the pseudonymous trader Mags noted that the altcoin market cap is forming a bullish continuation pattern known as a falling wedge. This pattern could signal a potential breakout and an upside rally for altcoins in the near future.
At the time of writing, the total altcoin market cap stands at $195.07 billion, a significant drop from its peak of $446.85 billion in November 2021. Despite the decline, some traders remain optimistic. MN Consultancy founder Michael van de Poppe mentioned that the altcoin market is still 47% down from its all-time highs but expressed confidence in an eventual breakout.
Crypto trader Mags has pointed out a potential major shift in the altcoin market cap. Source: Mags
Meanwhile, Toncoin (TON) has experienced the most significant decline among the top 10 cryptocurrencies, falling by 15.31% following the arrest of Telegram CEO Pavel Durov in France on Aug. 24. Other altcoins like Solana (SOL) and XRP have also seen sharp declines since their March highs.
Investor sentiment in the broader crypto market remains cautious, with the Crypto Fear & Greed Index showing a “Fear” score of 29, down from 39 a week earlier. However, Bitcoin’s dominance remains stable at 57.20%, with analysts predicting a potential peak at 60%.
