Altcoin Market Faces 13 Consecutive Months of Net Selling – Has It Reached a Bottom?
Altcoin selling pressure is at a five-year extreme after 13 months of net selling, with fragmented liquidity and too many tokens complicating recovery.Summary
The altcoin market capitalization remains below $1 trillion, reflecting extreme bearish sentiment after 13 consecutive months of net selling, totaling -$209 billion, according to CryptoQuant data. This sustained selling pressure, unlike previous bear markets, shows no sign of slowing down, leading analysts like IT Tech to suggest buyers are absent rather than it being a mere dip.
Further evidence of weak altcoin sentiment comes from derivatives data, where Bitcoin's long ratio has remained significantly above the altcoin average for four months, indicating traders are reducing altcoin exposure. Moreover, the total number of listed altcoins has surged 70-fold over five years, meaning too many tokens are competing for a stagnant market cap, which threatens low-cap assets.
Technical analysis on the altcoin market cap excluding the top 10 shows a head-and-shoulders pattern approaching a neckline support. Analysts like Pentoshi predict that any rebound may not be substantial, anticipating new lows eventually. This environment, where over half of listed cryptocurrencies have already failed, suggests a permanent shift where investors will prioritize liquidity and fundamentals over speculative assets.
(Source：BeInCrypto)