- Analyst Alan Santana warns of a significant bearish wave in the altcoin market as a triple top forms.
- Whale accumulation signals a potential altcoin breakout, with bullish trends predicted for Q4 2024.
Particularly focused on TOTAL2, which shows the whole market cap of all cryptocurrencies except Bitcoin, analyst Alan Santana of TradingView has issued a warning on the growing bearish wave in the altcoin market.
Santana claims that a triple top pattern has developed inside a strong descending channel, thereby corroborating a bearish perspective. He underlined that many of the public short positions have already reached their targets and that signs of a big market flush could shortly surface.
Altcoin Market Psychology: Navigating Denial and Delayed Reactions
While the market is still declining, Santana’s analysis emphasizes a frequent psychological trap that traders and investors fall into: many people remain in disbelief and hope for a sudden comeback.
“It is happening, but somehow we can get the impression that all is fine and prices will recover the next day, while the index and cryptocurrency have been moving down since March 2024,” he says.
This denial might slow down appropriate market responses, therefore exposing traders to vulnerability by the time the bearish trend’s degree is known.
Looking back on previous months, Santana cautioned that it is usually too late when traders embrace the truth of the declining momentum of the market. He notes that the behavior of the market is famously erratic, and when prices drop, there is usually hope that an upward reversal is about to happen, and when prices rise, one worries about a rapid crash.
This psychological contradiction still clouds judgment, especially because the present market has been steadily declining since early 2024.
Santana also alluded to a possible fall, noting that the market has been consolidating for a long period—often before a significant movement. Given how long the bearish trend has been accumulating, he emphasized that the ultimate crash of 2024 may arrive quickly.
“The good news is that it will be fast when it happens because it has been in the making for so long,” Santana said, arming traders for a notable downturn.
On the other hand, a prior CNF report pointed out a more hopeful picture. Another well-known analyst foresaw a bullish Cup and Handle pattern, which would indicate an altcoin surge in the fourth quarter (Q4) of this year.
Rising crypto dominance and whale accumulation also point to the likelihood of a big TOTAL2 break-through not too distant.