Altcoins
Analysts Predict an “Explosive Altcoin Rally” Coming
Over the weekend, the cryptocurrency market began to recover largest retracement of this bullish cycle. The sharp correction sent the Bitcoin and altcoin market to levels not seen since February.
While some sectors of the crypto community felt as if the bull run was over or needed to “cool down,” others seemed optimistic about the future of the cycle. Now that the market has recovered from the correction, analysts predict that altcoin season may be coming soon.
Is the correction phase finished?
Over the weekend, cryptocurrency analyst and trader MilkybullCrypto shared with his X followers that the Altcoin market cap was at “an RSI level that initiates an explosive rally.”
According to its chart, this level is a “reset to a healthy rally,” as seen in 2016 and 2020. During these two cycles, when altcoins reached this level, a “huge rally” followed.
The analyst shared his latest predictions on Monday after seeing the market strengthen recovery. For Milkybull, the altcoin market cap has finished a “hot retest.”
The market showed a similar correction during the 2020-2021 rally before skyrocketing to all-time highs (ATH). The chart appears to show the same performance, which could mean that altcoins are “preparing for an explosive rally,” if history repeats itself.
Altcoins resembling performance between cycles. Source: MilkybullCrypto
Likewise, cryptocurrency trader and analyst Captain Fabik consider the “Healthy Correction is done”. In his post
“Cool-Off” or “Euphoria” Altcoin Coming Soon?
According to analyst and trader Rekt Capital, the market capitalization of Altcoins, excluding the top 10 cryptocurrencies, has “successfully retested the $250 billion support level” in recent weeks.
According to the trader, altcoins are following the path proposed in his “Ultimate Altcoin Market Capitalization Game Plan for the Coming Months.” With this plan, Rekt Capital predicted that the altcoin market capitalization would rise to the $315 billion level before falling back to the $250 billion mark. This retracement would be followed by an explosive rally above the $440 billion market cap.
Altcoins remained above the $250 billion support zone despite sharp corrections, as seen in the chart below. For the analyst, this suggests that the market “is now showing the first signs of an attempt to retreat from here”.
Ultimate Altcoin Market Cap Game Plan For The Coming Months. Source: Rekt Capital
Famous figures have expressed their “disappointment” with the performance of altcoins this cycle. Altcoin Sherpa consider that “many alts haven’t even been running that hard in recent months,” which might suggest it’s time to “cool down.” At the time, the analyst believed the altcoin rally was “over” for the next 1-4 months.
However, others believe that the “euphoria phase” for altcoins is coming. According to Crypto Yhodda, “Alts will rise again and by the end of 2024 they will go crazy.” Furthermore, the analyst believes that “Altcoins Cycle III” will give us some crazy pumps.
According to his graphic, cycles I and II of altcoins showed a symmetrical triangle pattern before the breakout. The surge was followed by a slowdown before the upward trajectory continued, called “Round 1” by the analyst.
Thereafter, the rally would repeat the pattern in a second round before reaching the cycle high. “Cycle III” appears to be in the middle of Round 1, which suggests to the analyst that there is still a long way to go before “reaching the euphoria phase”.
Altcoins market capitalization sits at $1.045 trillion in the weekly-chart. Source: TOTAL 2 on TradingView
Featured image from Unsplash.com, chart from TradingView.com