Following Ethereum’s (ETH) emergence from its local bottom of $1,747 recorded on Binance crypto exchange on February 6, the wider altcoin market is starting to show signs of strength. On-chain data shows that certain market participants are taking advantage of the bearish mood surrounding the crypto market.
Strong buy walls for altcoins
Since ETH’s bottom on February 6, altcoin trading volume has ballooned to a level unlike anything seen in previous crypto market bull cycles. While most retail investors are still selling, institutional investors are quietly building strong buy walls.
The divergence between retail and institutional investors’ behavior indicates that the latter cohort of investors is likely anticipating a reversal in the market trend. These investors are not shying away from absorbing the selling pressure created by retail investors.
Altcoin trading volume in this cycle has already increased to a level not seen in previous market cycles. Interestingly, most altcoins have not even recovered to their previous highs. Yet, trading activity remains particularly robust.
The incongruency between the existing market sentiment and rising trading activity indicates that demand for digital assets is quietly increasing behind the scenes. In the same vein, order book activity suggests that the magnitude of buy walls being created by large investors is unlike anything seen before.
Should the trend continue, the upcoming altseason is very likely to dwarf all previous altcoin seasons. The combination of high trading volume, strong support levels, and quiet accumulation of specific altcoins hints toward a massive potential bull run.
Preparations for altseason?
While the aforementioned exchange data hints toward an upcoming altseason, veteran traders and entrepreneurs in the industry are not too convinced there will ever be one again.
In an exclusive interview with AltCoinDesk, prominent crypto entrepreneur Eljaboom remarked that there will be no more altseasons. He said that the entry of institutional investors and the approval of crypto-based ETFs changed the game, and the industry is too large to have a full-blown altseason again.
