The persistent failures of bullish attempts have left altcoin investors frustrated. Despite Ethereum (ETH) reaching its all-time high (ATH) for a brief moment and Bitcoin (BTC) showing robust peaks amid a volatile trend, many altcoins have suffered losses exceeding 80% in the past year. This scenario has driven investors to panic sell at a loss during the last quarter. The pressing question remains: when will a genuine upward trend in cryptocurrencies manifest?
Real Recovery in Cryptocurrency Markets
Currently, as BTC recovers and several altcoins witness double-digit increases, investors who have forgotten the sudden declines in the last quarter are getting excited. Nevertheless, the resistance tests that we have experienced numerous times have continuously failed. Those who jump on the bandwagon during the rise often find themselves facing the aftermath as the wagons topple.
Due to this, the majority of investors remain skeptical about the ongoing rise. Is there a way to determine if the recovery is real? It’s impossible to make this assertion by looking at a single metric. A combination of various metrics and market conditions determines whether the upward movement is genuine. CryptoQuant analyst Darkfost recently pointed out that one of the crucial signals needed to be convinced of the rise is the inflow of stablecoins.
The analyst, sharing the above graph, looks here to understand investor behavior and thus current conditions. If demand is high, prices will rise strongly and the surge will continue as long as demand remains intact. So, is demand increasing?
“At first glance, the graph may not seem significant, but the weekly average rose from $51 billion to $81 billion in one week. The 90-day average keeps decreasing and has now reached $100 billion. Regaining levels above this threshold will be critical. If stablecoins continue to flow to exchanges and get effectively distributed in the market, it will clearly be a positive signal. However, additional developments are necessary to sustain the ongoing shift.”
In summary, recent hopes of ascent might truly increase optimism, but given that we are still in the early stages of this movement, it could be better to wait and observe before being certain of the rise. The situation regarding ETFs offers a separate signal; an inflow exceeding half a billion dollars on Friday was positive, although it must persist into the coming weeks.
Bitcoin (BTC) and Altcoins
Quinten believes that the altcoin market cap, facing the $1.27 trillion resistance zone, has reached a decision point. Besides the metrics we will observe in the first section, whether the $1.27 trillion resistance is broken will also be crucial. Should the bulls succeed, a rally leading to gains exceeding 100% in some altcoins and extending to $1.65 trillion could be witnessed.
An analyst using the pseudonym Altcoin Sherpa is focused on the BTC chart. For him, the decision region lies at $93,000.
“There are two levels I am watching for BTC: the current $90,000 and then the $93,000 region. We haven’t seen a daily close above this level for three weeks, which is good… but we’re still trading within a broader range that has persisted for months. Until the $93,000 level is definitively broken, a truly wild upward surge isn’t there yet.”
