Altcoins are in the Early Stages of Depression, Says Analyst

• Cryptocurrency expert Crypto Tony warns of an impending altcoin depression phase.
• Tony suggests altcoins may dip further before a bullish reversal occurs.
• The strength of the dollar index inversely impacts the crypto market.

Crypto Tony, a leading cryptocurrency expert, has stated that we are currently entering the initial phase of an altcoin depression. He has refuted claims from other sources suggesting that altcoins show signs of recovery, recommending that users disregard such assertions.

Tony referred to the renowned Wall Street Cheat Sheet, which outlines the psychological stages of the market cycle to elucidate the present market conditions. According to this Cheat Sheet, the depression phase is characterized by a widespread sentiment of surrender among investors, who often abandon hope in their investments under the belief that everything is lost. This phase typically occurs at the tail end of a bear market, just before prices rebound.

Tony elaborated on the present market conditions using supplementary metrics such as Ethereum’s performance relative to Bitcoin , the altcoin market capitalization, Bitcoin’s market dominance, and the dollar index. He pointed out that the altseason graph, when juxtaposed with Ethereum’s performance against Bitcoin, indicates that the market continues to be in a bearish phase.

Based on the Total3 data, Tony highlighted the possibility of altcoins dipping further before triggering a bullish reversal. This is attributed to the prevailing bullish sentiment in the overall altcoin market cap. Tony also pointed out that Bitcoin’s dominance remains bullish, and until this shifts, the altcoin rally will be on hold. The analyst stated that the confirmation of altcoins’ lows would come after Bitcoin’s dominance structure reversed.

Tony observed that the strength of the dollar index has an inverse relationship with the expansion of the cryptocurrency market. He pointed out that currently, the dollar is robust, and if this changes, the cryptocurrency market is likely to experience a recovery.

The altcoin market has experienced a prolonged bearish period through its various stages. The transition into the depression phase indicates that the market has navigated through stages of complacency, anxiety, denial, panic, capitulation, and anger. This suggests that the market is nearer to the conclusion of the bearish season than its inception. However, Tony underscores that despite common belief, bearish activity remains in the market before a complete reversal.