Altcoins Face 'Insane Volatility' And 'Super Negative' Sentiment—But 'Better Days Are Coming,' Says Trader

The recent crypto market downturn has wiped out significant value from altcoins, leading to deeply negative sentiment and extreme volatility. However, traders urge patience, believing this could be a prime accumulation phase before the next major rally.

What Happened: Crypto analyst Michael van de Poppe described the current altcoin market as “insane volatility” with “super negative” sentiment.

He believes this marks the transition from old narratives dying to new narratives emerging, advising traders to hold onto utility-driven altcoins as their time is coming.

Crypto trader Osemka highlighted that Bitcoin BTC/USD closed below the 4-hour breaker but quickly engulfed it with the next candle, suggesting downside might be limited for now.

The price is still respecting the diagonal breakout trend. For altcoins he sees the following trends:

• OTHERS (representing smaller-cap alts) is retesting a major breakout level from last year. If today’s candle closes green, the relative strength indext will confirm a retest, potentially leading to upside.
• TOTAL2 (the altcoin market cap excluding Bitcoin) is attempting to break out from a triangular structure, while sitting on strong monthly support—a promising setup.
• Ethereum ETH/USD is sitting on major monthly support, pushing toward $2,750 resistance. The RSI has already broken out, signaling building momentum for a big move.

Also Read: Record-Breaking Token Creation In January Raises Concerns Over Altcoin Liquidity, Market Quality

What's Next: Crypto analyst Miles Deutscher pointed out that altcoin open interest (excluding BTC and ETH) has dropped 50% from December highs but still remains above pre-election levels.

He warned that another 50% decline could take OI back to September lows, suggesting more leverage may need to be flushed before a sustained rally.

In another X post, he describes the classic cycle psychology of altcoins.

Anger is transitioning into Depression, where low interest, dull price action, and apathy dominate. This phase slowly grinds out weak hands through boredom rather than panic.

Historically, this has been the best accumulation period, as the biggest gains come when everyone else has checked out.

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