Halfway through the second quarter of 2023 and the altcoin market continues to experience bearish sentiment despite Bitcoin’s dominance lacking fuel to push beyond 48 percent. Increased profit-taking in the low-cap meme coins for the past few days has increased the overall altcoin sell pressure. Furthermore, meme coins like Pepe and WOJAK that attracted huge crypto trading volume are down more than 50 percent in the past week.
Is Altcoin Season Over?
The altcoin season is majorly hyped due to the high volatility compared to Bitcoin, which over the years has experienced diminishing returns. In the third week of May, most altcoins had already recorded the first bump from FTX-induced lows. However, more FOMO traders are likely to help the altcoin season materialize again in the near term basis.
According to a popular trader on Twitter @cryptotony_, the altcoin market is poised for one more dip before the bulls take over in the near future.
“One more small drop then a hard buyback and we are good for the next month or two I think,” the analyst noted.
Overall, the altcoin market could be waiting for a breakout confirmation from the mother coin Bitcoin and Ethereum which are still trolling from bearish sentiments. According to crypto trader Ali, Bitcoin faces immense resistance before falling above $31k.
“Bitcoin faces stiff resistance ahead, especially between $28,180 and $28,990, where 1.24 million addresses bought 973,220 $BTC. On the flip side, the most important support level is $26,490. Failing to hold above it could trigger a steeper correction to $24,100 or $23,190,” the analyst noted.