The crypto market has been on a bullish momentum recently with the total crypto market cap printing 4 green consecutive weekly candles. However today, the crypto market has printed its first red candle after an impressive run. But, the altcoin market is seemingly losing the momentum the most as altcoins dip. 

This correction in altcoins has triggered massive liquidations across the crypto market. But does the correction across altcoins mean that the potential incoming altcoin season is over? 

Altcoin Market Dips 5%

The total crypto market cap excluding BTC (TOTAL2) is plunging. According to the daily chart on TradingView, the total crypto market minus Bitcoin’s market cap, known as the altcoin market, has lost $82.99 billion over the last 24 hours. This drop marks a 5.42% plunge leaving the altcoin market at $1.45 trillion. 

Previously, this market had surged to $1.54 trillion level as altcoins rallied. However, with the recent dip, the market is losing its footing as bullish momentum across several coins fade. 

Furthermore, the drop in the altcoin market has also affected the general crypto market cap (TOTAL). The crypto market now stands at $3.81 trillion dropping from above the $4 trillion mark achieved on July 22.  With this dip, the TOTAL has now formed its first first red weekly candle after four consecutive green ones. 

Clearly, altcoins like XRP, BNB, SOL, Dogecoin and more have corrected more steeply compared to Bitcoin. Meanwhile, BTC has remained steady between $117,500 and $118,800. 

As per data shared by Crypto Bubbles shows that most altcoins have recorded a dip of 3% – 20% on the day. Only a few coins amongst the top 100 coins by market cap have managed a surge over the last 24 hours. 

While Bitcoin remained steady above $117,000, altcoins like Ethereum, XRP and Dogecoin are struggling. The recent drop reflects the first wave of profit-taking after 4 weeks of upward momentum. 

Close to $1 billion Liquidated From the Crypto Market

Over the last 24 hours, the crypto market has been hit by a massive wave of liquidations following the dip in altcoins. According to liquidation data by Coinglass, 289,439 traders were liquidated over the last 24 hours with $880.85 million wiped out from the crypto market. 

Out of the total liquidations, $743.9 million came from long positions meaning those who bet on altcoins to continue surging were hit the most. On the other hand, short positions recorded $136.93 million in liquidations. 

Ethereum traders got hit the most with a total of $197.42 million wiped out. Other altcoins besides the top 100 coins by market cap followed with $169.17 million. XRP came in third with a total of $114.68 million liquidations. Bitcoin and Solana saw $80.36 million and $53.97 million liquidated, respectively.

Recent Altcoin Market Dip Just a Minor Pullback: Analysts 

While the recent dip caused some panic across the market, analysts see it as a mere pullback. In a post on X, top analyst Crypto Caesar emphasized that those who understand the market know that the dip is just a minor pullback. 

“I mean, anyone who actually understands the market would have expected, and even been content with a minor pullback…A slight correction, followed by the resumption of upward movement at multiple instances is how I foresee this rally to be,” Crypto Caesar wrote. 

He further predicts that Ethereum will “most likely break through $4K” after which another dip will occur before upward momentum continues. The analyst also emphasized that the slow steady grind upwards is the best for a sustainable rally. 

Crypto analyst Altstreet Bets also claims that the altcoin season is still as “altcoins, completed the pullback target,” and are now in consolidation waiting for the next leg up. 

Besides Crypto Caesar and Altstreet Bets, Changpeng Zhao, famously known as “CZ” also views the recent correction as simply a “dip again”.

An upward continuation in the alts market with a drop in Bitcoin’s dominance could move the market closer to a full-blown altcoin season. However, market participants must keep watch of altcoins performance compare to Bitcoin as any pullback in altcoins alongside Bitcoin rally could delay the much awaited alt season.