Altcoins on the rise: Cryptocurrency market signals a turning point

After a year of deep correction, investors are finally seeing the dawn of hope. Currently, Bitcoin (BTC) hovers around $90.77K, still room to reach its all-time high of $126.08K; Ethereum (ETH) is also gradually gaining momentum. More notably, those altcoins that had fallen more than 80% are beginning to show signs of life, with several projects recently recording double-digit gains. Does this truly signal a turning point in the cryptocurrency market?

Stablecoin Inflows as a Barometer of Genuine or Fake Recovery

Many market observers are asking the same question: can this upward trend continue? CryptoQuant analyst Darkfost believes the answer lies in on-chain data—the change in stablecoin inflows is a key signal for judging whether market demand is truly rebounding.

According to the latest data feedback, notable changes have emerged. Weekly stablecoin inflows surged from $51 billion to $81 billion within a week, a significant increase. However, the 90-day moving average continues to decline, currently falling below the $100 billion mark. What does this contradictory phenomenon imply?

The analyst points out, “On the surface, this may seem insignificant, but the divergence between this short-term spike and the long-term decline warrants deep thought. If stablecoins continue to flow into exchanges and are effectively allocated into the market, that is a clear bullish signal. But maintaining this momentum requires subsequent capital support.” Additionally, the net inflow of over $500 million into spot ETFs last Friday also provides a positive sign. However, whether this trend can continue in the coming weeks remains uncertain.

Altcoin Market Faces Critical Support Levels

Regarding the entire altcoin market, analyst Quinten highlights a critical point—the total market cap of altcoins is testing the resistance zone at $1.27 trillion. This is not only a technical level but also a crucial decision zone that will determine future trends.

Once the bullish forces break through this barrier, a qualitative shift in the market is expected. Based on current technical analysis, some strong-performing altcoins could see gains of over 100%, and the total market cap of altcoins might extend to $1.65 trillion. For investors who have held their positions during the bear market, this is undoubtedly a long-awaited rebound opportunity.

BTC’s Decision Zone: $93,000 Becomes a Pivot

Similarly, Bitcoin’s situation warrants attention. Nicknamed Altcoin Sherpa, the technical analyst focuses on two key levels for BTC: the current $90,000 and the upper zone around $93,000.

“We have been unable to close above $93,000 on the daily chart for three consecutive weeks. This isn’t necessarily a bad sign, but it’s not optimistic either,” the analyst notes. “BTC remains in a sideways range that has lasted for months. Until the critical level of $93,000 is truly broken, we won’t see a real frenzy of upward movement.”

Confirmation of a Turning Point Requires Time and Patience

Considering stablecoin inflows, ETF capital movements, altcoin market resistance levels, and BTC’s technical position, the market indeed shows positive signs. However, as several analysts have stated, we are still in the early stages of recovery. To confirm the legitimacy of this upward trend, investors might be advised to remain cautious and wait for more confirmation signals.

Whether it’s the $1.27 trillion altcoin market cap resistance, the $93,000 level for BTC, or stablecoin inflows maintaining above $100 billion, these indicators’ performance over the next few weeks will determine whether this crypto market recovery is fleeting or a genuine turning point.