The crypto market is expected to welcome a trend reversal, alts may encounter opportunities

Recently, the overall trend of the crypto market has been positive, with the macro environment and the major cryptocurrencies gradually improving.

Trump's stance on tariffs has softened, leading to a decrease in market volatility. Currently, a rate cut is expected to start in June, with a possibility of three rate cuts within the year, which may inject new liquidity into the market.

The friendly policies for encryption are continuing to advance. The United States is establishing "strategic Bitcoin reserves" and "U.S. digital asset reserves," with multiple states promoting Bitcoin state reserve legislation. The stablecoin bill is expected to be implemented in the second half of this year. The new SEC chair is expected to reduce enforcement actions against crypto businesses and promote industry innovation.

Bitcoin has outperformed US stocks since mid-March, demonstrating some hedging properties. The MACD fast line and slow line are currently above the zero axis, indicating a market trend shift from bearish to bullish.

Ethereum, as the second largest cryptocurrency by market capitalization, has recently shown signs of reversal:

• On-chain data shows that the number of profitable addresses and the MVRV indicator are in an oversold state, comparable to the previous bear market bottom.
• The contract positions and prices are positively correlated, with leveraged funds and spot funds driving the price upward together.
• Multiple technical indicators show bottom signals, and the price breaks through the upper edge of the downward channel.

Under the backdrop of a market recovery, some alts have seen significant increases. Taking NEIROETH and ZEREBRO as examples, both have shown data anomalies at the contract level, indicating a further upward trend.

NEIROETH:

• 3-day increase exceeds 200%
• The contract trading volume is 24 times that of spot, OI/MC exceeds 13.8 times.
• Large holders hold more long positions, CVD continues to rise.

ZEREBRO:

• The open interest has increased by over 300% within 24 hours.
• The large holder's long-short ratio is 1.4, bullish.
• Funding rate is positive, higher than usual levels

In summary, the current crypto market is overall positive, and Ethereum is in a key position with the potential to break through. In this market condition, it is essential to focus on the alts with data anomalies to seize potential opportunities.