Pay close attention to the three technical indicatorsBestonlinecasinorealmoneynodepositThe cryptocurrency trader saidBestonlinecasinorealmoneynodepositThe counterfeit currency market is currently in an "incredible stage" and if history repeats itself, it may soon enter an "explosive rebound phase".
Mikybull Crypto, a cryptocurrency analyst, told their 66600 X fans in a post on May 11: "the market value of counterfeit coins is now at an incredible stage, and historically, there will be an explosive rebound."
The skeptical phase means that investors remain sceptical despite positive market signs, as reflected in the 24-point drop in the cryptocurrency fear and greed index over the past 30 days. Greed currently has a score of 56.
According to TradingView, the total market value of counterfeit coins (excluding the top 10 cryptocurrencies) has fallen by 17% in the past 30 days.Bestonlinecasinorealmoneynodeposit.55% to $264.9 billion.
Nonetheless, cryptocurrency trader Rekt Capital told their 465300 X followers in a May 12 post that it remained above $250 billion support and was "preparing for a future rally."
Traders are looking at three indicators of the broader cryptocurrency market-the 20-day index moving average (EMA), the random relative strength index (RSI) and Bitcoin dominance-to support their forecasts of the direction of the counterfeit currency market.
EMA is the average price for the whole period, with more weight in the recent period. Titan of Crypto, an anonymous cryptocurrency trader, said in a May 11 post that if the total market capitalization of cryptocurrencies was "retested" EMA20, while also "cross-bullish" (a measure of the relative strength of the random RSI index itself), it could lead to "rebound time".
The Bitcoin dominance map-a measure of Bitcoin's market share relative to the entire cryptocurrency market-is one of the oldest but most frequently cited indicators. It can provide traders with overall investor sentiment and risk appetite in the market. More market analysts say that in addition to Bitcoin, the cryptocurrency market is likely to hit bottom in June, marking the beginning of the next fake coin bull market cycle.
Rekt Capital, a popular cryptocurrency analyst, wrote in an article on May 8 that, based on the historical chart pattern, counterfeit coins may find a local price bottom around early June:
"copycat coins are perfectly following the plan. Counterfeit coins bottomed out in early February. During the halving of Bitcoin, counterfeit coins were sold off. Counterfeit coins bottomed out in early summer. "
The counterfeit currency market has been hit hard over the past month. The market value of counterfeit currencies, excluding the top 10 cryptocurrencies, fell more than 21 per cent last month to $265 billion.
Despite the monthly slump, the market capitalization of counterfeit coins (YTD) has risen more than 24 per cent so far this year and more than 167 per cent last year.
Historically, counterfeit coin sentiment has been linked to the price of BTC. Alex Onufriychuk, a consultant and coach on the Qubic Labs Accelerator blockchain, said counterfeit coins could hit bottom around June as US spot ETF inflows fell and market sentiment and bitcoin prices remained depressed. He told Cointelegraph:
Due to the lack of sufficient new liquidity for Bitcoin ETF in the US and Hong Kong, they are likely to hit bottom in June. This suggests that the integration period may be extended. "
Aurelie Barthere, chief research analyst at Nansen, told Cointelegraph that despite seeing a potential partial bottom, the fake coin bull market first needs bitcoin prices to break through the upside:
"copycat coins are high beta cryptocurrencies, and when the market mood is very optimistic, they will succeed. Sentiment among cryptocurrency investors has been less exuberant since mid-March. As BTC prices consolidate near the 20-day moving average of the index, counterfeit coins are more volatile. We need to break through and clearly restore the upward trend of BTC in order to outperform the market. "
BTC prices have been hitting low highs since mid-March. However, many analysts believe this is a period of healthy consolidation that has been halved. In addition, the chart suggests that the multi-month bull market flag will hit an all-time high in late 2024.
Qubic Labs's Onufriychuk wrote that because counterfeit coin sentiment is closely related to bitcoin prices, finding a partial bottom does not necessarily translate into a knockoff coin rebound:
"even if the counterfeit currency hits bottom around June, it does not necessarily mean that the bull market will begin. Given the scarcity of new liquidity and the heavy reliance on institutional reinvestment in new projects, more fundamental changes are needed to achieve major changes, such as increased retail and institutional investment and favourable regulatory development. "
