Last week the altcoin market and many individual crypto assets broke out of the downtrend and saw a massive rally.
But for the first time since the collapse of the crypto hype bubble, the crypto community is not buzzing with an alternate season, suggesting investors are still in disbelief. Even recent price movements over the past two years support the theory, according to the famous Wall Street Cheat Sheet.
Market psychology suggests that altcoin investors are incredulous about the upcoming bull run
The altcoin market has been bleeding to death for two years in a row after bitcoin and cryptocurrency took the world by storm in late 2017.
Cryptocurrencies found themselves in a bubble – a bubble that burst, losing the value of these emerging assets by up to 99% in many cases.
Related reading | Altcoin Market Is Exploding Over 50% In 30 Days, Is Crypto Due To Pull Back?
Two years later, the market is still recovering from the damage done, and although the market has turned bullish again, crypto investors are more bearish than ever.
For the past two years, even the glimmer of an altcoin rally would spark discussions about whether there would finally be a return to the alt-season – a time when altcoins far outperform Bitcoin.
But this time around, it’s different, and even if many altcoins have rallied 40% or more in the past 30 days, few analysts or traders have even mentioned the words “alt-season”.
There could be a very valid explanation for this: market psychology.
After two years of downtrend, crypto investors are mentally conditioned to expect the worst from the market. Every time altcoins recover, they are rejected and beaten by bears to the next level of support. In 2019, the alternate season became a “meme” or running joke across the industry because it was so common.
Altcoin market capitalization;
Note the similarities between the Wall St. cheat sheet here, as it looks like we’re turning the Depression into an incredulous rally.
Macro we see a large double bottom with a bullish breakout in MS in between.
It’s hard not to be optimistic about alts. pic.twitter.com/rmL6ZxLZUm
– Caesar? (@thrillmex) January 22, 2020
Crypto Market Price Action closely mimics the Wall Street cheat sheet
According to the famous Market Street Cheat Sheet, even the altcoin market cap price chart looks eerily similar to the sample market cycle.
After hitting a potential double bottom, altcoins have risen steadily, even when sentiment is extremely bearish. There was also a breakout of resistance and was accompanied by the highest volume on weekly time frames in crypto history.
Related reading | Altcoin market with the highest purchase volume in crypto history at its lowest point
This is likely a signal that the bottom has been reached and that altcoins will soon be starting to appreciate again. But they might surprise most crypto investors who believe this is another rally.
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