Altcoin investors may end 2025 without seeing any returns on their portfolios. However, many analysts remain optimistic, even though altcoin market capitalization (TOTAL2) has fallen 30% from this year’s peak.
Why do analysts think the altcoin bear market is entering its final stages? We highlight the main reasons below.
sponsored
Why altcoins are at an opportunity stage
First, according to CryptoQuant data, only about 3% of altcoins on Binance are trading above their 200-day moving average. This level is a historic low.
CryptoQuant analyst Dirkforst cited a lack of liquidity and defensive investor sentiment as the main reasons. Investors are now prioritizing capital preservation over exposure to risky assets.
The fact that most altcoins are trading well below their long-term averages reflects widespread undervaluation caused by negative sentiment. Recent BeInCrypto analysis reveals that altcoins such as XRP, TON, and ADA have not recovered in price despite having strong fundamentals.
Despite the bleak outlook, historical comparisons suggest that such downturns often create attractive opportunities for patient investors.
sponsored
“While it may seem counterintuitive, these types of periods often present the best opportunities, and these can last for some time, especially if the market enters a prolonged bear phase,” Dirkforst said.
Second, fear and lack of interest from retail investors often frees up the best price zones. Large investors tend to seize these moments and try to accumulate.
Renowned X-analyst CrediBULL Crypto highlighted this factor as an important signal to identify the market bottom. In a recent post, I argued that attention, not capital, moves first.
sponsored
When individual investors lose interest, major corporations start buying. With the introduction of early green candles, retail attention gradually returns. Retailer participation will accelerate the next phase of the movement.
Technical signals point to a potential bottom
Third, multiple technical indicators suggest that the altcoin bear market is nearing an end. Renowned market analyst Michael van de Poppe said that the current altcoin market capitalization level is acting as strong support. He described zones as “areas to be held.”
sponsored
“Finally, we seem to be at an important support level. It seems worth continuing to sit at this level. A solid pullback suggests that a green candle may emerge from here,” predicted Michael van de Poppe.
There are additional signals that support this outlook.
These factors suggest that altcoins may be in the final stages of a decline. Recent BeInCrypto analysis shows that a DCA strategy could prove effective if started in December.
But some analysts still warn of risks. They claim that altcoin season may not arrive until 2026. Venture capital inflows remain weak and it may take a significant amount of time for market sentiment to recover.
