Altcoin Surge Fuels Speculation of 'Altseason' Despite Struggles of Bitcoin
Summary:
Bitcoin struggles to maintain its support level after its fourth halving as numerous altcoins, particularly memecoins and layer 1 cryptocurrencies, perform better than BTC, indicating a potential altcoin season. However, analysts suggest caution as only 41% of the top 50 altcoins have outperformed Bitcoin over the last 90 days, indicating that the altcoin season has not yet arrived.
Bitcoin's (BTC) value has been battling to sustain its essential stability point of $64,800, several days following its fourth halving on April 20th. Concurrently, numerous altcoins, particularly memecoins and layer 1 cryptocurrencies, have eclipsed BTC's performance over the preceding week, leading to speculation around the commencement of altcoin season. An "altseason" is generally a time in the cryptocurrency market where altcoins' values surge, frequently surpassing the performance of BTC.
On the 24th of April, analyst and trader Moustache noted that the overall altcoin market capitalization (also known as TOTAL2), excluding BTC, had completed the ABC-correction phases under the Wyckoff-Method and was undergoing a breakout. Crypto enthusiasts have been anticipating an upswing in altcoin values, due to their potentially higher risk-reward outcomes.
Previously in an April 23rd blog post, Moustache pointed out that TOTAL2 had broken free from a falling wedge on the monthly chart, mirroring a familiar layout from the 2020-2021 market cycle. Entrepreneur and crypto investor, Lark Davis, also studying TOTAL2, suggested that the altcoin market cap reclaimed a significant support level from the 50-day exponential moving average.
Despite this support level being forfeited since the Wall Street opening on April 24th, a bullish shift from the moving average convergence divergence (MACD) indicator hinted that altcoins were preparing for an upward movement. Davis voiced, "With a bullish MACD crossover, it may be on the cusp of something substantial."
Still, it's too early to uncork the champagne. The majority of altcoins, following their March peak, have now adjusted. BTC, currently 12% below its highest ever rate of over $73,800, is on shaky grounds following the April 24th flash crash, potentially pushing it below the $65,000 mark.
Analyst Daan Crypto Trades stated that the altcoin sentiment is "quite low," with growing skepticism about witnessing an altseason. This performance seemingly aligns with the Blockchain Center's altcoin season index's downtrend, suggesting that the altseason hasn't commenced yet. The index states that "If 75% of the top 50 coins performed better than Bitcoin over the last season (90 days), it is Altcoin Season."
Presently, only 41% of the leading 50 altcoins have outperformed Bitcoin over the last 90 days. As this is under 75%, it implies that it's not yet altcoin season.
This piece doesn't offer any investment advice or recommendations. All investment and trading undertakings come with risks, and individuals are encouraged to carry out their own detailed studies prior to making any decisions.
Published At
4/24/2024 8:00:00 PM
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