Altcoin Market Faces Continued Bearishness Amid Bitcoin’s RetestAltcoin Market Faces Continued Bearishness Amid Bitcoin’s Retest The altcoin industry has been mired in a bearish downtrend for several weeks. Despite increased whale activity in the meme coin sector, the market has failed to gain traction. Fears of further crypto capitulation linger as Bitcoin retests the lower boundary of its four-month horizontal channel. Bitcoin ETFs and Government Sales Weigh on Sentiment US spot Bitcoin ETFs have experienced mixed cash flows, and the recent sales of Bitcoin by the German government in the wake of Mt. Gox’s $9 billion distribution have dampened bullish sentiment. Altcoins have continued to suffer as a result, despite trading at multi-year lows against Bitcoin. Santiment’s Top Three Altcoins to Buy According to Santiment’s on-chain analysis, most altcoin holders are underwater, leading the firm to use the Market Value to Realized Value (MVRV) indicator to identify potentially bullish and bearish assets. Altcoins in the “Sell Zone” Santiment warns holders of ENS, Mantra (OM), and Reserve Rights (RSR) as they are reportedly in a “historically bad sell zone.” Altcoins in the “Buy Zone” * Basic Attention (BAT): In the “historically good buy zone,” BAT has lost 90% from its all-time high and trades around $0.189. * Chromia (CHR): Also in the “historically good buy zone,” CHR has gained 7% in the past week and trades at $0.2377. * Highstreet (HIGH): The “best buy opportunity” according to Santiment’s MVRV indicator, HIGH has an FDV of around $178 million.
The altcoin industry has been caught in a bearish trend in the past few weeks. Even the meme coin sector has been contracting despite the increased whale on-chain activities. As Bitcoin’s (BTC) price retests the lower border of a horizontal channel that began four months ago, the fear of further crypto capitulation is not over.
Moreover, the US spot Bitcoin ETFs have experienced mixed cash flows in the last few weeks.
Additionally, the heightened Bitcoin sales by the German government amid Mt.Gox’s $9 billion distribution have weighed heavily on the bullish sentiment. As a result, the altcoin industry has continued to bleed despite their respective pairs trading and multi-year lows against Bitcoin.
Santiment on Top Three Altcoins to Buy
According to the on-chain analysis provided by Santiment, most of the altcoin holders are underwater, counting significant losses. As a result, the firm used the Market Value to Realized Value (MVRV) indicator to determine the most potentially bullish and bearish altcoins.
Meanwhile, Santiment cautioned holders of ENS, MANTRA (OM), and Reserve Rights (RSR) as they are in the historically bad sell zone.
Basic Attention (BAT)
According to the MVRV midterm opportunity and danger zone divergence, the BAT token is in the historically good buy zone. The small-cap altcoin, with a fully diluted valuation of about $283 million and a daily average traded volume of about $43 million, is still 90 percent below its all-time high.
The altcoin traded around $0.189 on Wednesday, down 23 percent in the past four weeks.
Chromia (CHR)
Similarly, Chromia (CHR), an open-source public blockchain conceived by the Swedish company Chromaway AB, is in the historically good buy zone. The small-cap altcoin, with a fully diluted valuation of about $195 and a daily average traded volume of around $41 million, has pumped over 7 percent in the past seven days to trade about $0.2377 on Wednesday.
Nevertheless, CHR price is still down over 83 percent from its all-time high.
Highstreet (HIGH)
Santiment’s MVRV indicator highlighted that Highstreet (HIGH), a small-cap altcoin with an FDV of around $178 million, has presented the best buy opportunity recently.
