3 Reasons Analysts Believe Now Is the Smartest Time to Pay Attention to Altcoins

Jakarta, Pintu News – Widespread fear has enveloped the altcoin market, pushing investor sentiment to its lowest point since April. With almost 90% of altcoins below their long-term trends, experts say that this could be a good moment to accumulate.

Although market uncertainty is high, the data shows similarities to previous periods where similar conditions resulted in an altcoin recovery. Investors with opposing views are beginning to consider whether this fear-driven low offers a rare opportunity.

Market Capitulation or Opportunity? Analysts Call It a Good Time

Sentiment towards altcoins is currently at a low point, with only 10% of altcoins listed on Binance trading above their 200-day moving average. This pattern is considered a classic indicator of market capitulation – when most investors exit their positions or lose confidence.

Read also: Altcoins Start to Rise? Market Rotation Has Quietly Started!

Currently, 90% of the altcoin market is trading below that major trend, reflecting a widespread lack of interest from traders and investors.

Crypto analyst Darkfost notes that a similar pattern has occurred three times in the current market cycle, and each time it was followed by a short-term recovery in altcoin prices. He calls this zone “sell fatigue” which is often the most profitable entry point for investors who are willing to be patient.

“The best time to start getting into altcoins is usually when no one wants them anymore. It is in these times of disinterest that the market often offers the best opportunities in the medium term,” the analyst wrote.

While current conditions may offer opportunities, the expert also cautions the importance of selectivity. Investors are advised to focus on projects that still have liquidity and on-chain activity, despite the general market downturn.

“But don’t wait too long, as this kind of condition usually returns to normal quickly once the market realizes that its fears have been exaggerated,” he added.

Bitcoin dominance drops to 59% after ‘Crypto Black Friday’

In the crypto market cycle, Bitcoin (BTC) usually absorbs capital flows during times of uncertainty. However, recent data shows a rapid reversal of that pattern.

Bitcoin dominance-that is, the share of the crypto market controlled by Bitcoin-has seen a sharp decline following the event dubbed ‘Crypto Black Friday.’ At the time of writing, the dominance rate stands at 59.07%.

Crypto Rover market analysts highlighted the formation of a head-and-shoulders (H&S) pattern on the daily chart of Bitcoin Dominance. This pattern is a trend reversal formation that is bearish in nature, and often signals the end of an uptrend.

If this pattern is confirmed, it indicates that Bitcoin’s market share will likely continue to decline in the near future.

Such a decline in Bitcoin’s dominance generally reflects a rotation of capital to altcoins, where investors seek higher potential returns from cryptocurrencies with smaller market capitalizations.

Historically, patterns like this have often signaled the beginning of an altcoin season-a period where altcoins perform better than Bitcoin.

Sentiment Hits Extremes – Contrarian Signal?

In addition to technical indicators and market flow, the Fear & Greed Index for crypto-a key gauge of market sentiment-has fallen to its lowest level since April. Market participants are still cautious after the recent massive sell-off, and uncertainty still hangs over the market at large.

Read also: ASTER Price Surges, $2 Target Closer?

However, Darkfost analysts see that moments when fear is at its extreme can actually be a signal that the market is nearing its bottom.

“Every time the market hits this extreme fear zone, it always coincides with a bottom forming. It’s a reminder that when the market consensus is too heavy to one side, it usually reverses. And today, we are again entering that zone… act accordingly,” he wrote.

As such, current market conditions could be a potential turning point for altcoins. Notable signals such as Bitcoin’s declining dominance, market sentiment plummeting to extreme levels of fear, as well as historical patterns in line, all support this view.

While risks remain, data suggests that the crypto market may be nearing the end of this fear-based down cycle.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• BeInCrypto. Why Analysts Say Now Could Be the Smartest Time to Buy Altcoins. Accessed on October 14, 2025