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As the cryptocurrency market begins to recover from a major revision in February, the altcoin shows signs of strength. The rebound bounced the $3 trillion mark on February 2nd, then pushed the total crypto market capitalization upwards.
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Nevertheless, this fix has been seen Altcoin's Market Cap Dip On a massive scale after rejecting it for $425 billion. However, a key observation from Crypto analyst Rekt Capital pointed out that despite rejection from this important level of resistance, Altcoin's market capitalization pullback is much shallower than the previous recession . This observation is The bull may be in charge slowly Inside the altcoin.
Altcoins: Market capitalization is $425 billion and faces rejection, but Altcoins acquires strength
Rekt Capital's Technical analysis is highlighted It focuses on the importance of a $425 billion resistance level for the Altcoin market, particularly the total market capitalization of non-Top 10 Altcoins. This analysis is that this will last longer amid the wider recession in the Altcoin sector. The revision began in early January, when the market capitalization peaked at a high of around $440 billion.
Despite facing strong rejection at this critical level, the depth of the latest retracement remains more pronounced than previous revisions. The current pullback measures around 50% from the $425 billion resistance, but the last two important economic recessions saw a sharp decline of 69% and 85%. This mild retracement is a change that could affect the trajectory of the Altcoin market.
A key point from this trend is the apparent weakening of the $42.5 billion resistance. This indicates that the post-retracement bearish momentum across the Altcoin market is not as strong as it was in the previous cycle. Unlike previous cycles where heavy sales led to deeper drawdowns, current price action is increasing the market's resilience.
What does this mean for the Altcoin season?
Rekt Capital's analysis is consistent with expectations Investors are eager to look forward to Arrivals for the altcoin season. A relatively shallow pullback from a $425 billion resistance level reinforces the argument that this Altcoin season can unfold better than the past two cycles.
Crypto analysts like Rekt Capital are eager to anticipate the Altcoin season being put into action. Bitcoin profits begin to roll into Altcoins, with the Altcoin market surpassing Bitcoin.
Another analysis revealed that Rekt Capital recently focused on Refusal to control Bitcoin About 64%. However, he noted that history shows that around 64% rejections are almost temporary and that the actual rejections are around 71%. Once Bitcoin's domination reached here, the iteration of history was seen to be rejected very strictly by the Altseason, which defines the cycle.
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For now, Bitcoin's dominance remains strong, and the full-fledged Altcoin season has yet to come into play. Analysts like Benjamin Cowen suggest the expected altcoin The rally may be suspended, Bitcoin continues to absorb much of the market's liquidity. Altcoin investors may have to wait a little longer until the advantage shows a more clear reversal.
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