Why do analysts believe that altcoin is in the final stage of the bear market?

Altcoin investors may end the year 2025 without recording profits in their portfolios. However, many analysts remain optimistic, despite the total market capitalization of altcoin (TOTAL2) having fallen by up to 30% from this year's peak.

Why do experts believe that the bear market for altcoins is gradually coming to an end?

The points below will clarify the key reasons.

Altcoin – The stage opens up opportunities

According to data from CryptoQuant, only about 3% of altcoins on the Binance exchange are currently trading above the 200-day moving average – a record low number in history.

CryptoQuant analyst Darkfost believes the main reason is due to a lack of liquidity and the defensive mindset of investors. In the current context, the majority of investors prioritize capital preservation rather than taking risks with risky assets.

The ratio of Altcoins on Binance is above or below the 200-day SMA | Source: CryptoQuantThe fact that most altcoins are trading below the long-term average reflects widespread undervaluation, mainly driven by negative sentiment. Recent analysis from BeInCrypto indicates that altcoins like XRP, TON, and ADA all have solid fundamentals, yet their values have not recovered correspondingly.

Although the current outlook is still bleak, historical data shows that such periods of weakness often present attractive opportunities for patient investors.

“Although it may seem counterintuitive, it is often during times like these that the best opportunities arise. This phase can be prolonged, especially if the market enters a long-term downtrend,” Darkfost commented.

Fear Psychology – Golden Time for Big Investors

Fear and indifference from retail investors often create attractive price zones. Institutional investors usually take advantage of this moment to accumulate assets.

Famous analyst CrediBULL Crypto on platform X believes this is an important signal to identify the market bottom. According to him, the market's attention always moves ahead of the capital flow.

When retail investors lose interest, the “whales” will quietly buy in. When the first green candles appear, the attention of the retail group will gradually return, thereby driving the next growth phase.

Technical Signals – Signs of Bottom Formation

Many technical indicators also show that the bear market for altcoins is gradually reaching its endpoint. Analyst Michaël van de Poppe states that the current market capitalization level of altcoins is serving as a strong support area, and this is the “area that needs to be maintained.”

The market capitalization of altcoin does not include BTC and ETH | Source: Michaël van de Poppe"We are at a very important support level. Maintaining a position here is definitely worth it. Strong bounces from this area indicate that green candles may appear in the near future," Michaël van de Poppe predicts.

In addition, other supporting signals also reinforce this perspective:

These factors suggest that altcoin may be in the final stage of the downtrend. Analysis from Coinphoton also recommends that the DCA strategy (average price) will be effective if applied from December.

However, some experts still warn about potential risks. They believe that the altcoin season may not appear even in 2026, when venture capital flows remain weak and market sentiment needs more time to recover.

Mr. Giáo