But one thing that stopped people from fully believing was this BEARISH DIVERGENCE where most sold
( Including me )
I learnt that one indicator isn't enough though these work 90% of the time.
Let's compare the two scenarios and how to deal with this in 2025 š
1ļøā£ Lessons from Q4 2023
Weāve seen this movie before.
Back in late 2023, charts flashed the same ābearish divergenceā
RSI cooled off while prices kept climbing. Traders panicked, some sold early.
But what happened next?
The market exploded higher.
Altcoin Market Cap nearly doubled while liquidity poured in, proving that divergences donāt always predict downturns, especially in inflow-driven markets.
2ļøā£ The Current Setup
Look closely at Total 3 (Altcoin Market Cap) today.
Yes, RSI is flattening while price is making new highs and technically a divergence.
But weāre in a liquidity expansion phase. Bitcoin just hit fresh highs, Ethereum is waking up, and stablecoin supply is rising again.
That means external capital is entering, not just rotating.
When that happens, momentum indicators like RSI can stay āoverheatedā for weeks while prices keep ripping higher.
3ļøā£ Why Iām Not Selling
Retail energy is back.
Narratives like AI, RWA, and DePIN are fueling this cycleās growth, and institutional flows are setting the floor higher.
Selling in October because of one indicator doesnāt make sense when the macro is screaming risk-on.
Divergences may warn, but they donāt dictate, liquidity does.
If history repeats, this divergence might actually mark the start of the next ALTSEASON, not the end of it.
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Q4 2023 WAS INSANE š
$TAO +753%
$SEI +440%
$SOL +378%
$INJ +355%
$SUI +220%
$RENDER +181%
$NEAR +152%
$KAS +107%
and lots more..
But one thing that stopped people from fully believing was this BEARISH DIVERGENCE where most sold
( Including me )
I learnt that one indicator isn't enough though these work 90% of the time.
Let's compare the two scenarios and how to deal with this in 2025 š
1ļøā£ Lessons from Q4 2023
Weāve seen this movie before.
Back in late 2023, charts flashed the same ābearish divergenceā
RSI cooled off while prices kept climbing. Traders panicked, some sold early.
But what happened next?
The market exploded higher.
Altcoin Market Cap nearly doubled while liquidity poured in, proving that divergences donāt always predict downturns, especially in inflow-driven markets.
2ļøā£ The Current Setup
Look closely at Total 3 (Altcoin Market Cap) today.
Yes, RSI is flattening while price is making new highs and technically a divergence.
But weāre in a liquidity expansion phase. Bitcoin just hit fresh highs, Ethereum is waking up, and stablecoin supply is rising again.
That means external capital is entering, not just rotating.
When that happens, momentum indicators like RSI can stay āoverheatedā for weeks while prices keep ripping higher.
3ļøā£ Why Iām Not Selling
Retail energy is back.
Narratives like AI, RWA, and DePIN are fueling this cycleās growth, and institutional flows are setting the floor higher.
Selling in October because of one indicator doesnāt make sense when the macro is screaming risk-on.
Divergences may warn, but they donāt dictate, liquidity does.
If history repeats, this divergence might actually mark the start of the next ALTSEASON, not the end of it.