FX.co ★ spinka.angelica | Cryptocurrency news

The altcoin market began to lose the positions it had gained since late August. The reason for the rapid fading of the altcoin season that hadn't really begun was profit-taking by investors, said the analyst of the CryptoQuant platform under the pseudonym Darkfost. The anonymous expert noted a change in the share of altcoins on the Binance exchange trading above their 200-day moving average. At the end of August 81% of coins were below that level, and by the beginning of October the share had shrunk to less than 10%. This meant that the majority of altcoins had moved into an uptrend. However, by the end of October the situation had changed. The share of coins trading above the 200-day moving average fell from more than 90% to 51.6%. The remaining 48.4% of tokens fell below the indicator — the analyst called this a sign of market weakening.

From late August to early October more than $814 billion flowed into altcoins. Over the next 15 days the market lost more than $134 billion. Darkfost suggested that a significant portion of the selling was done by investors who decided to take profits after the coins' price increases. The CryptoQuant analyst believes that altcoin market participants' sentiment can change quickly. At the same time, periods of weak interest in such assets may be suitable for gradually building investment positions, Darkfost suggested. Earlier the CryptoQuant analyst said that the altcoin market was entering a critical phase. He pointed to an increase in the number of coin transfers to crypto exchanges and a slowdown in the growth of the total market capitalization of altcoins.