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Altcoin Rally Is Coming, Says CryptoQuant CEO
Ki Young Ju reported a significant increase in limit buy orders for altcoins, signaling a potential rally.
This surge suggests that investors are creating strong buying barriers for altcoins, excluding Bitcoin (BTC) and Ethereum (ETH), likely in anticipation of an impending altcoin rally.
“Whales are preparing for the next altcoin rally,” Ju wrote on X.
Increased limit buy order volume indicates strong buying interest, which often precedes market swings. For those who don’t know, limit orders create “quote volume” on exchanges, while market orders create “taker volume.”
Whales and institutions, such as market makers and brokerage firms, typically use limit orders for large trades to minimize slippage.
Altcoins Rise as Bitcoin Rises
During an altcoin rally, the prices of alternative cryptocurrencies experience significant increases. This rally is often driven by positive market sentiment, increased trading volumes, and a shift in investor attention from Bitcoin to altcoins.
Factors such as Bitcoin price movements, fear of missing out, and market speculation play a crucial role in an altcoin rally. When the price of Bitcoin rises, profits often flow into altcoins, further driving up their prices.
Limit order indicators are calculated by adding the difference between the buy and sell quote volumes in a one-year moving window. An uptrend indicates an increase in the buy volume of quotes, indicating the formation of strong buy walls. This pattern suggests a potential bullish movement in the altcoin market.