Famous Trader: “The ‘Ecstasy’ Phase May Be Near”

Altcoin Market Is About to Explode: The “Hype” Phase May Be Near.

A cryptocurrency trader predicts that the altcoin market will enter a “euphoric” phase if the total market capitalization increases by 16% from current levels.

However, before that happens, high volatility will still dominate this market.

Waiting for the Historical Milestone
Anonymous trader Daan Crypto Trades notes that the “euphoria” phase will only truly begin when TOTAL3 —the total capitalization of all altcoins excluding Bitcoin and Ethereum —surpasses its 2021 all-time high of $1.13 trillion .

Currently, according to data from TradingView , TOTAL3 is at $962.78 billion , up more than 91% YTD.

“Between $840 billion and $1.1 trillion, the market will remain volatile,” Daan said, warning that he would be “more cautious” if the market cap fell below $800 billion.

Short-Term Trading Psychology Is Dominating
The current cryptocurrency market is dominated by short-term trading sentiment. Daniel Cheung , co-founder of Syncracy Capital , commented:

“Traders are focusing on short-term gains, constantly monitoring charts for entry/exit points and using leverage, rather than patiently waiting.”

This makes explosive altcoin rallies like previous cycles less likely.

Capital Flows To Altcoins
Although Bitcoin still maintains its lead with a dominance of nearly 60% , many traders have started to shift to altcoins, where they believe the profit opportunities are higher.

Anonymous trader Dyme said:

“At this point, altcoins offer a much better risk/reward ratio than Bitcoin. The time for averaging with Bitcoin is over for at least the next 1.5 years.”