Anticipated 'Altseason' Approaches as Altcoin Market Prepares for Massive Surge
Summary:
Analysts predict the onset of the crypto "altseason," a period when smaller digital currencies appreciate significantly in value. This prediction comes despite fluctuations in Bitcoin's price, as altcoin market capitalization consistently retests the $315 billion support level. The focus is on Bitcoin market dominance, which is over 50% since September 2023 but might show signs of reversal. Notably, high-capacity altcoins, except for a few outliers, remain significantly below their 2021 peak prices. Analysts refer to technical signals, indicating that altcoin market cap is ready for a big surge soon.
Analysts anticipate the renowned "altseason" of the crypto world, a period during bullish trends when smaller, lesser-known digital currencies see an exponential growth in value, might be just around the corner. On April 11, the analyst and trader, ‘Rekt Capital,’ observed that despite Bitcoin's (BTC) price experiencing significant fluctuations in recent weeks, the only consistent factor has been the altcoin market capitalization. He noted its consistency in retesting the $315 billion as a support level for several weeks in a row. Crypto enthusiasts have paid close attention to the altcoin markets, well aware they offer a higher risk-reward ratio and are poised for an impressive surge as the next stage of the bullish trend takes over. Historically, altcoins tend to follow Bitcoins with a lag in price appreciation. Key indicators like the altcoin market capitalization and Bitcoin dominance help traders predict when altcoins are about to enter their bullish phase. However, altcoins still have a way to go. Mid-March highs were followed by a fair correction amongst altcoins, while BTC is hovering close to its historic high of over $70,000. Analysts are currently focusing on Bitcoin market dominance, which has held steady over 50% since September 2023 and stands at 54.5% presently, as per TradingView data. Analyst 'Crypto Nova' believes the switch between ascending and descending Bitcoin dominance marks the point at which altcoins truly begin to shine. This switch is yet to take place, but as noticed by Nova, a clear pattern of strong upward candles making consistent high highs and high lows is missing, suggesting an impending reversal as the chart continues to move sideways. Relying on the same tone, the technical analyst ‘Titan of Crypto’ upheld this sentiment in a recent post, positing that another altseason is approaching. The analyst cited the Ichimoku technical signal as a prime factor contributing to a halt in Bitcoin dominance, thus sparking the altseason. In a similar vein, analyst Kevin Svenson notified his extensive network of 140,000 followers that the altcoin market cap is gearing up for a considerable surge. He added, often after Bitcoin's halving, the narrative leans in favor of altcoins. On the day, altcoins have mostly traded flat, with the total crypto market capitalization hovering around the $2.74 trillion mark. Excluding outliers like Toncoin (TON) that recently achieved an all-time high, most of the high-capacity altcoins continue to remain significantly below their 2021 peak prices. Cryptocurrencies like XRP, Dogecoin, Cardano, Avalanche, Bitcoin Cash, Polkadot, and Chainlink are all at least 60% down their peak, while Bitcoin’s position is less than 5% down from its all-time high. On a related note, a study from a magazine reveals that one in six newly launched Base memecoins is risky, while 91% seem to carry vulnerabilities.
Published At
4/12/2024 6:38:05 AM
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