Crypto traders are keeping a careful eye on three key indications for confirmation that the altcoin market is currently in the “disbelief stage,” which, if history is any guide, may soon go on to a “explosive rally.” In a post dated May 11, crypto analyst Mikybull Crypto informed their 66,600 X followers that the market capitalization of cryptocurrencies is presently at the disbelief stage, which is typically followed by an explosive rally. The disbelief stage is characterized by investors’ continued skepticism in spite of encouraging market signals, as evidenced by the Crypto Fear and Greed Index’s notable 24 index point decline over the last 30 days. Right now, the “Greed” score is 56.
This coincides with the overall market capitalization of altcoins, which does not include the top ten cryptocurrencies, falling to $264.9 billion from $17.55% during the previous 30 days, per TradingView statistics. In a message published on May 12, anonymous cryptocurrency trader Rekt Capital informed its 465,300 X followers that the market is “positioning itself for a future move to the upside” despite still holding above the $250 billion support level.To back their forecasts regarding the future of the altcoin market, traders are monitoring three indicators across the broader crypto market: the dominance of Bitcoin, the stochastic relative strength index (RSI), and the exponential moving average (EMA) over a 20-day period.The average price over the period, or EMA, is calculated by giving more weight to the most recent periods. The pseudonymous trader Titan of Crypto wrote on May 11 that “rally time” may arrive if the total market capitalization of cryptocurrencies “retests” the EMA20 and simultaneously “crosses bullish” on the, which gauges the relative strength and weakness of the stochastic RSI indicator itself.
One of the earliest and most widely used indicators is the Bitcoin dominance chart, which shows the percentage of the cryptocurrency market that Bitcoin owns in comparison to the total market. It can give traders insight into the market’s general investor attitude and risk tolerance. As of this writing, 54.7% of all Bitcoins are in use; this is a 0.56% decrease over the previous week. A further “fall from here can start an altseason,” according to X post by pseudonymous technical expert Yoddha on May 11.