Bitcoin and Altcoins Nosedive Before the Halving
Bitcoin and Altcoins Nosedive Before the Halving
As Bitcoin's halving nears, the market has experienced sharp declines, especially in altcoins. Garry Kabankin from Santiment provides insights into the market sentiment leading up to the event.
Speculative Trading Environment
The recent price corrections in Bitcoin and altcoins may reflect a natural market response to speculative anticipation, rather than fundamental declines in value.
Monitoring Miner Behavior
- Change in miners' balance and total supply can provide insights into market dynamics.
- Decrease in miner selling pre-halving might suggest a bullish outlook.
Market Value Metrics
Kabankin suggests monitoring the MVRV ratio and mean coin age to gauge market sentiment and potential selling pressure. These indicators combined with technical analysis can guide investors amidst uncertainty.
Spotting Bull Run Resumption
Fear of missing out (FOMO) and stablecoin supply fluctuations can signal market readiness for upswings. On-chain metrics and social sentiment should be closely observed for market direction.
Altcoin Season Anticipation
Kabankin notes the historical pattern of altcoin seasons post-Bitcoin halving, indicating a potential market shift towards higher returns beyond Bitcoin surges.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.