🚨 ALTCOIN IS IN THE "EXTREME CONSOLIDATION" ZONE – A GOOD OPPORTUNITY OR A LIQUIDITY TRAP?
A notable data point from the Binance exchange shows:
Currently, the percentage of altcoins above the MA200 line is only about 5%.
This means that about 95% of altcoins are still trading below the long-term trend.
This is an extremely rare state in the market cycle.
Historically, whenever this percentage drops to an extremely low zone, the market is often in a state of exhaustion after a long period of weakness or accumulation. Then, when the money flow returns, the market usually experiences a strong rebound to rebalance.
However, it is important to understand the significance of this indicator.
• When 70–90% of altcoins are above the MA200 → the market is often in the final phase of excitement of the cycle.
• When only 5–10% of altcoins are above the MA200 → the market is in an exhaustion zone, with money flow being extremely cautious.
And currently, we are exactly in that exhaustion zone.
This does not mean that Altseason will start immediately.
But it indicates that the risk of a deep decline across the board is gradually diminishing, and the market is entering a zone with a higher probability of recovery compared to a few months ago.
Another important factor that remains unchanged:
Bitcoin is still the center of the money flow.
As long as Bitcoin has not established a stable upward structure, it is very difficult for altcoins to explode simultaneously like in previous Altseason phases.
Personally, I believe this phase resembles the market's "liquidity consolidation" zone. When exhaustion reaches its peak, just one triggering factor like the return of money flow or Bitcoin stabilizing the market trend can shift the state quite quickly.
Source: MInvest