Altcoin Market Has Entered Reaccumulation Phase, Traders Say

Altcoin Market Has Entered Reaccumulation Phase, Traders Say

Crypto traders are reporting that the altcoin market has entered a “reaccumulation phase,” suggesting a potential move into the “second leg of the cycle” after reclaiming a crucial support area. Independent crypto trader Mags noticed As of July 25, altcoins are up just 58% since breaking out of a prolonged 525-day accumulation phase.

The accumulation phase is characterized by a bottoming market, where prices reach local lows and stabilize. This phase is characterized by a 33% decline in the TOTAL2 index, which tracks the total market capitalization of all cryptocurrencies excluding Bitcoin, since March 11. During this period, investors typically buy on dips, anticipating future price increases.

Mags shared a chart to illustrate that despite a recent correction, altcoins are up 58% since coming out of their accumulation phase. This suggests that there may be further upside potential. “This pullback is probably just a re-accumulation before another rally,” Mags commented.

Data from Bitformance shows that over the past three months, the top 200 equal weight index, which assigns equal weight to all cryptocurrencies regardless of market cap, has fallen more than 55% compared to the market cap index, which weights cryptocurrencies by market cap. This decline indicates that smaller cryptocurrencies have underperformed Bitcoin, implying that the altcoin season has not yet begun.

Bitcoin’s market dominance, which measures its share of the broader cryptocurrency market, is nearing a multi-year high. Bitcoin’s dominance currently stands at 56.56%, up 3% over the past 90 days. This shift in market capital indicates that investors have reallocated funds away from altcoins.

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