Altcoin investors may end the year 2025 without seeing profits in their portfolios. However, many analysts still maintain a confident outlook, even as the total market value of altcoins (TOTAL2) has decreased by 30% from this year's peak.
What makes analysts believe that the bear market for altcoins may be entering its final phase? The following points highlight important reasons to watch.
Why are alternative coins in a period of opportunity?
First, data from CryptoQuant shows that only about 3% of altcoins on Binance are trading above the 200-day moving average. This level is considered the lowest in history.
An analyst from CryptoQuant named Darkfost stated that the main reason is due to a lack of liquidity and cautious sentiment among investors. Investors are currently prioritizing capital preservation over accessing high-risk assets.
The fact that most altcoins are trading below the long-term average reflects being undervalued due to negative sentiment. BeInCrypto's latest analysis also revealed that altcoins like XRP, TON, and ADA have strong fundamentals, but their prices have yet to recover.
Even with seemingly bleak trends, when compared to the past, it indicates that such weak periods often create interesting opportunities for patient investors.
Although it may seem counterintuitive, such times often create the best opportunities. This period may be prolonged, especially if the market enters a long-term bear market, Darkfost said.
Second, the fear and lack of interest from retail investors often provide opportunities to achieve the best prices. Large investors tend to seize this opportunity to accumulate assets.
CrediBULL Crypto, a well-known analyst on X, has emphasized that this factor is a crucial signal in identifying bear markets. The latest post explains that interest, not capital, adjusts beforehand.
When retail investors lose interest, large players will immediately buy. When green candles appear early on, interest from retail investors gradually returns, and then the participation of retail investors will accelerate the next phase of movement.
Technical signals indicate the trend of the lowest point.
Third, several technical analysis tools indicate that the bear market for altcoins is entering its final phase. Michaël van de Poppe, a renowned market analyst, stated that the current total market cap level of altcoins is a key support level, describing this zone as 'the area that should be held.'
Ultimately, it seems that we are on a crucial support level, making it worthwhile to hold a position here. A strong rebound indicates that green candles may emerge from this point, as predicted by Michaël van de Poppe.
Additional signals also support this trend:
The proportion of the total market cap of altcoins excluding the top 10, compared to Bitcoin, is at its strongest support level since 2017.
The dominance of altcoins is currently at levels close to the COVID crisis, which previously led to a strong recovery.
These factors suggest that altcoins may be in the final stages of a downward adjustment. However, a recent analysis by BeInCrypto indicates that DCA strategies may yield good results if started in December.
Nevertheless, some analysts continue to warn of risks, as they argue that the altcoin season may not arrive even in 2026. Additionally, the inflow of funds from venture capitalists remains weak, and the market atmosphere may take a long time to recover.
