Altcoin Market Bottom Signal? Only 5% Above 200-Day Moving Average, Trading Volume Plummets 80%
The altcoin market is currently experiencing a severe pullback, with approximately 95% of altcoins trading below their 200-day moving average. Trading volume has declined to around $7.7 billion, with continuous outflows of liquidity. Investors are favoring Bitcoin as a highly liquid asset, resulting in reduced capital absorption capacity for altcoins. Historical data indicates that this concentration often appears at market bottoms, suggesting that capital may rotate toward altcoins in the future. The current market features low activity and low valuations, with future momentum likely to be influenced by macroeconomic liquidity conditions.