Why Analysts Believe Altcoins Are in the Final Stage of the Bear Market

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As the year 2025 draws to a close, one might ponder the fate of those intrepid souls who have dared to invest in altcoins. Alas, it seems that many may find their portfolios lacking in the glow of profits. Yet, amidst this dismal landscape, a glimmer of hope shines forth from the minds of analysts, whose optimism remains steadfast despite a staggering 30% decline in the altcoin market capitalization (TOTAL2) from its peak this year. Who knew doom and gloom could be so…charming? 😏

What, pray tell, fuels this unwavering belief that the bear market for altcoins is approaching its long-awaited finale? Let us delve into the key points that illuminate this curious phenomenon.

Why Altcoins Are in a Phase of Opportunity

To begin with, data from CryptoQuant reveals a rather striking statistic: a mere 3% of altcoins on Binance are currently trading above their 200-day moving average. One can almost hear the collective gasp of disbelief from investors, as this figure marks a historical low! 📉

Darkfost, the sage analyst from CryptoQuant, suggests that the scarcity of liquidity and the pervasive sentiment of caution among investors are the driving forces behind this somber reality. Evidently, capital preservation has become the new black, overshadowing any inclination to dabble in risky assets.

The disheartening truth that most altcoins languish well below their long-term averages serves as a testament to the widespread undervaluation fueled by the prevailing negative sentiment. Recent analyses from BeInCrypto reveal that despite boasting strong fundamentals, altcoins such as XRP, TON, and ADA have witnessed their prices stubbornly refuse to rebound. It’s almost as if they’re auditioning for a tragic play! 🎭

Yet, let us not forget the lessons of history – such periods of despair often harbor hidden gems for those patient enough to wait.

“Even though it may seem counterintuitive, these types of periods often offer the best opportunities. This phase may last for some time, especially if the market enters a prolonged bear phase,” muses Darkfost, with an air of prophetic wisdom.

Secondly, it is often within the grip of fear and the apathy of retail investors that we find the most opportune price zones. Large investors, those shrewd titans of finance, tend to seize these moments to quietly accumulate wealth. A well-regarded analyst known as CrediBULL Crypto has identified this phenomenon as a crucial signal for pinpointing market bottoms. In a recent post, he posited that it is attention – not capital – that takes center stage first. The irony! 🙄

“Capital isn’t scarce-attention is.”

And what, you ask, drives attention? Ah, when “number go up” rapidly, of course!

Market bottoms, like the one I suspect we are currently witnessing, are characterized by a distinct lack of interest from retail.

The big players stealthily load up while retail is…well, elsewhere!

– CrediBULL Crypto (@CredibleCrypto) December 21, 2025

As retail investors drift away, the larger entities spring into action, buying up assets like children at a candy store. With the first signs of green candles emerging, retail interest begins to flicker back to life, paving the way for the next thrilling chapter of this rollercoaster ride.

Technical Signals Point to a Potential Bottom

Lastly, various technical indicators hint that the altcoin bear market may soon be drawing to a close. The esteemed market analyst Michaël van de Poppe has proclaimed that the current levels of altcoin market capitalization serve as formidable support. He describes this zone as an “area to hold,” which sounds rather cozy, doesn’t it? 🛋️

“Ultimately, it looks like we’re on a crucial level of support. It seems worthwhile to stay positioned at this level. Solid bounces suggest that green candles may appear from here,” predicts Michaël van de Poppe, exuding a sense of cautious optimism.

These myriad factors suggest that altcoins might just be tiptoeing toward the final act of their decline. A recent analysis from BeInCrypto proposes that a DCA strategy initiated in December could yield fruit for the discerning investor.

However, let us not don our rose-tinted spectacles too hastily; some analysts continue to wave the flag of caution. They maintain that an altcoin season may remain elusive, even in 2026. With venture capital inflows remaining as weak as a limp handshake, and market sentiment requiring ample time to recover, the road ahead may still be fraught with uncertainty. 🚧

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2025-12-22 14:44