A leading crypto analytics firm is warning that the digital asset markets may be about to witness a corrective move.
Santiment says on social media platform X that interest in altcoins has increased in recent days, amid a market-wide rally.
According to the analytics firm, the terms “alt,” “altcoins” and “altcoin” increased abruptly in social media chat late last week, indicating traders are showing signs of exuberance.
“With total crypto market caps skyrocketing this week (+5.9%) and volume increasing (+65.4% from the previous week), interest in altcoins has increased. When this happens while prices are rising, it can be a sign of greed.”
The analytics firm also says that the broader crypto markets appear to be following a bullish trend that started in October – the month when Bitcoin (BTC) and altcoins witnessed a rebound.
With markets showing signs of greed, Santiment warns that a retracement period may be in store for Bitcoin and altcoins.
“Bitcoin’s +13% price increase over the past week has led traders to speculate on numerous new support and resistance milestones, with $50,000 widely expected. Ironically, having breached these price levels, altcoins flipped the script during the opening hours of the weekend as the public focused too much on the price of BTC. The trend throughout the bull cycle that started in October was:
- Bitcoin enjoys an isolated pump, the crowd becomes BTC dominant
- Profits are divided into altcoins, the public becomes greedy
- Bitcoin recovers mildly, altseason ends much more drastically.
Stay tuned to see how the public reacts to this second step in the cycle this weekend, and whether open interest on speculative alts starts to rise. If so, step 3 will probably come soon.”
At the time of writing, Bitcoin is trading at $48,196, up 1.41% in the past 24 hours.
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