Pentoshi, a pseudonymous strategist with a large following (779,400 on platform X), emphasizes momentum as the key driver of markets. He argues that the rapid launch of new altcoins overwhelmed demand, ultimately tipping the scales in favor of bears.

“In essence, it boils down to basic supply and demand dynamics,” Pentoshi explained. “The constant stream of new coin launches demanded ever-increasing liquidity to maintain their prices. At some point, we needed roughly $200 million in daily inflows just to sustain existing prices.”

This oversupply situation, coupled with widespread investor participation, resulted in a lack of passive buying pressure and readily available liquidity. Consequently, the market witnessed these significant downward corrections.

“We reached an equilibrium point, and then the bears took control for a while,” stated Pentoshi.

The TOTAL3 metric, a popular measure of the altcoin market capitalization, plummeted from its 2024 peak of $788.85 billion to a low of $563.85 billion, reflecting a roughly 30% decline.

Despite the market correction, Pentoshi maintains his belief in the ongoing crypto bull market.

“This isn’t the ultimate bull market peak, in my view,” he clarified. “It’s merely a local top. A true bull market ends when there’s an essentially infinite supply and no more buyers left. We’re not there yet, in my opinion. Stay positive, and there could be good opportunities in the coming weeks.”

Pentoshi shared a chart analysis of TOTAL3, suggesting potential support around $600 billion before a recovery and a subsequent rally towards a $1 trillion valuation.

“Overall, I view this as the beginning of a fantastic new opportunity,” concluded Pentoshi. “The situation could change if Bitcoin loses its market structure or we see significant Bitcoin outflows from ETFs. While that’s possible, it hasn’t happened yet. These things tend to go both ways. For now, this is likely just one of several 30%+ corrections we can expect throughout the cycle, similar to what we’ve seen in the past.”

The post Top Analyst Breaks Down Altcoin Crash: Momentum Shifted After Supply Surge appeared first on Coin Engineer.

It appears that Bitcoin’s maintaining its level above $37,000 positively impacts altcoins, bringing about new spikes. However, a minor fall on Bitcoin can have a negative impact on altcoins. In this instance, it would be wiser to remain cautious without getting overly excited.

‣ Bitcoin (BTC) BTC/USD pair is trading at $37456, down 0.12% at the time of writing. Resistance levels for BTC range between $38000 – $40000, whereas support levels range between $37000 – $36600.

‣ Ethereum (ETH) ETH/USDT pair is trading at $2016, down 0.28% at the time of writing. Resistance levels for ETH range between $2090 – $2130, whereas support levels range between $2000 – $1967.

‣ Worldcoin (WLD) WLD/USD pair is trading at $2.41, up 11.03% at the time of writing. Resistance levels for WLD range between $2.50 – $2.65, whereas support levels range between $2.35 – $2.18.

‣ Avax (AVAX) AVAX/USD pair is trading at $21.73, up 4.17% at the time of writing. Resistance levels for AVAX range between $24.68 – $28.05, whereas support levels range between $20.56 – $18.01.

‣ Rune (RUNE) RUNE/USD pair is trading at $5.56, up 5.72% at the time of writing. Resistance levels for RUNE range between $5.65 – $6.68, whereas support levels range between $5.16 – $4.77.

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The post Latest Status in Bitcoin and Cryptocurrencies! – November 21 appeared first on Coin Engineer.