There is a possibility that the widely anticipated altcoin bubble may not materialize. Major altcoins, including #Bitcoin, are currently challenging the 20-week moving average. Some, like $SOL, have already fallen below this average, while others, like $ETH and $BNB, are still holding above it. The total market capitalization of altcoins has also broken below the 20-week moving average on the weekly chart. When assets trade above this moving average, it indicates a bullish market, and when they trade below it, it suggests a bearish market.

Bitcoin's drop below the 20-week moving average has triggered a bearish sentiment across the market. Even before this drop, when Bitcoin was trading above the 20-week moving average, altcoins did not exhibit the same strength seen during the 2021 bubble.

The recent rise in Bitcoin from $20,000 to around $70,000 is relatively modest compared to previous bubbles. Similarly, altcoins have experienced significantly lower growth rates, leading many to still expect further increases. This belief is why many investors think Bitcoin has not yet peaked. However, assuming that lower growth rates mean further upside is an unfounded emotional assumption. The desire for higher prices unconsciously drives this belief.

In my experience, such psychological patterns typically indicate a market top. While not all altcoins may have peaked and some strong ones might still rise, the majority will not, making it inaccurate to call this an altcoin bubble.

Times are changing, and this crypto market is different from previous ones. The macroeconomic environment is also different. Adopting a logical, evidence-based approach rather than relying on simplistic patterns is crucial for long-term survival as a trader or investor.
#Bitcoin #SOL #ETH #BNB