TOTAL2 Shows a Triple Top Pattern Inside a Descending Channel, Warns Analyst Alan Santana

Particularly focused on TOTAL2, which shows the whole market cap of all cryptocurrencies except Bitcoin, analyst Alan Santana of TradingView has issued

Cryptocurrency market analysis firm TradingView has recently issued a warning regarding the growing bearish wave in the altcoin market, with a particular focus on the TOTAL2 index, which tracks the market capitalization of all cryptocurrencies excluding Bitcoin.

According to analyst Alan Santana, a triple top pattern has emerged within a strong descending channel, bolstering a bearish outlook. He highlighted that many of the public short positions have already achieved their targets, potentially setting the stage for a large market flush.

Santana's analysis delves into the psychology of the altcoin market, specifically highlighting a common pitfall during market downtrends. Many traders and investors initially remain in a state of denial, hoping for a quick market recovery.

“It is happening, but somehow we can get the impression that all is fine and prices will recover the next day, while the index and cryptocurrency have been moving down since March 2024,” the analysis reads.

This denial can delay appropriate market responses, ultimately leaving traders vulnerable by the time the extent of the bearish trend is fully realized.

Santana points out that traders typically embrace the reality of the declining market momentum too late in the game. He highlights the paradoxical nature of market psychology, where traders tend to hope for an upward reversal during price drops and fear a rapid crash when prices rise.

This psychological contradiction continues to cloud judgment, especially considering the present market has been on a steady decline since early 2024.

The analysis also touches upon the possibility of a rapid market crash, considering the extended period of consolidation—often observed before a significant market movement. Given the lengthy build-up of the bearish trend, he suggests that the final crash of 2024 may occur swiftly.

“The good news is that it will be fast when it happens because it has been in the making for so long,” Santana adds, preparing traders for a substantial market downturn.

In contrast to this bearish outlook, a previous analysis by CNF highlighted a more optimistic scenario. Another prominent analyst anticipated a bullish Cup and Handle pattern, which could indicate an altcoin surge in the fourth quarter (Q4) of this year.

Moreover, the rising crypto dominance and whale accumulation suggest the potential for a major TOTAL2 breakout in the near future.