Worst Sell-Off in Five Years: Are Altcoins at a Bottom or Are the Gates of Hell Opening?

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The altcoin market has been hit by the strongest selling pressure seen in the past five years, freezing investor sentiment solid. Amid the seemingly endless downturn, investors are on edge, questioning whether this signals a bottom or the beginning of a prolonged winter.

According to crypto media outlet CCN on February 18 (local time), CryptoQuant data analysis shows that net altcoin selling on exchanges over the past 13 months has reached $209 billion, the highest level in the past five years. As recently as early January this year, buying and selling were closely balanced, but since then, selling pressure has overwhelmingly dominated the market.

This one-sided wave of selling is largely attributed to the mass exit of retail investors who had entered during the bull market, along with smart money shifting into Bitcoin and stablecoins. There are no signs of institutional accumulation in altcoins, and one analyst warned, “Retail investors have left and smart money has moved on. This is not simply a dip-buying opportunity.”

Market indicators are also sending bleak signals. CryptoQuant’s Bull Score index has fallen to a historic low of zero, and even long-term holders are selling at break-even levels or realizing losses, reflecting extreme deterioration in investor sentiment. Experts caution that the collapse of the altcoin market could impact Bitcoin’s price as well, potentially leading to a test of $60,000 or, in a worst-case scenario, a drop to $55,000.

The current digital asset market is down 45% from Bitcoin’s all-time high, with most altcoins plunging more than 80% from their peaks. This mirrors the 2018 bear market when Bitcoin fell 84% and altcoins collapsed even more sharply. Looking at past cycles, altcoins tend to lead during bull markets but are typically the first and hardest to fall in bear markets.

Historically, such bear markets do not end overnight. Only after weak hands are completely shaken out and selling pressure fully dries up does quiet accumulation begin. Some analysts suggest that the current intense selling pressure may represent that very “final pain” phase.

Disclaimer: This article is provided for investment reference purposes only, and no responsibility is taken for any investment losses based on it. The content should be interpreted for informational purposes only.