The altcoin market cap has shown an important signal, known as a 'golden cross', indicating potential growth. Let's explore further.
What is a Golden Cross?
A golden cross occurs when the 50-day moving average crosses above the 200-day moving average. This signal is traditionally viewed as an indicator of a long-term bullish reversal in the market.
Historical Consequences of a Golden Cross
In 2021, a similar occurrence led to a 123x increase in altcoin market cap, rising from $120 billion to over $500 billion. Such signals typically provoke significant bullish rallies.
Current Situation in the Altcoin Market
Recently, some altcoins have shown growth, while the altseason index approaches a level of 25. This might indicate a shift in investor focus towards altcoins amidst increasing interest in DeFi and overall capitalization.
The observed golden cross may signal the beginning of a new bull cycle in the altcoin market, which could lead to increased investment in this segment.
