The altcoins market has been on a tear over the past few weeks, thanks to the resurgence of the premier cryptocurrency, Bitcoin, and the shifting climate of the general crypto market. Although the recent momentum of the altcoin market seems to be waning, there is still broad optimism amongst many investors and analysts.
Mags, a popular crypto analyst on the X (formerly Twitter) platform, has offered insight into the current landscape of the crypto assets class and its future prospects as the bull market seemingly approaches.
Altcoins To Go Parabolic Again?
In a post on X, Mags put forward a bold forecast for the altcoins market capitalization and expects the value of most cryptocurrencies to go parabolic in the coming years. The crypto analyst’s bullish argument revolves around the Moving Average Convergence/Divergence (MACD) indicator on the monthly timeframe of the altcoin chart. On the highlighted chart, the monthly MACD is on the verge of making a bullish cross.
#Altcoin will go Parabolic Again ?
Monthly MACD on the Altcoin Marketcap is about to Cross Bullish
In 2020 we saw a similar bullish cross on MACD and Altcoin Marketcap went from – $85 B to $1.73 T (+2100%)
The Altcoin Market Cap currently sits at $650 B.
Even if it… pic.twitter.com/NwvCbxRTwY
— Mags (@thescalpingpro) November 17, 2023
From a historical standpoint, the crypto analyst cited that a similar bullish cross occurred on the Moving Average Convergence/Divergence indicator in 2020. Following this cross, the altcoins market cap skyrocketed by more than 2,000% from $85 billion to $1.73 trillion. If this MACD cross forms again, Mags expects a similar bull run for the altcoins market.
In what seemed like a more realistic stance, the crypto analyst postulated a surge to a $7 trillion market cap by 2025, even if the altcoins experience only half of the 2020 growth. This represents a roughly 1,000% rally from the current altcoin market cap of $637 billion.
According to data provided by CoinGecko, the total cryptocurrency market capitalization stands at $1.429 trillion, with Bitcoin maintaining its place as the largest cryptocurrency (market cap of more than 700 billion).
Bitcoin Reclaims Dominance In Crypto Market
According to a recent report by Santiment, Bitcoin seems to be back to dominating the altcoins after a good run in the past month. The on-chain analytics platform highlighted that most cryptocurrencies have been witnessing a price correction at the tail end of the week.
📊 #Bitcoin price dominance is finally back, at least for the time being. #Altcoins have been retracing on the tail end of the week after the past month’s blistering hot rally. If the crowd begins to get worried and show #FUD, however, we could see some quick price rebounds. pic.twitter.com/VAcKd27WIH
— Santiment (@santimentfeed) November 17, 2023
Many of the tokens in the altcoin class, including recent top performers like Solana, Cardano, and Avalanche, appear to be slowing down. Nevertheless, Santiment said that swift price rebounds could occur “if the crowd begins to get worried and show FUD (fear, uncertainty, and doubt).”
Cryptocurrency market cap excluding Bitcoin on the daily timeframe | Source: TOTAL2 chart on TradingView
Featured image from Shutterstock, chart from TradingView