Altcoins
Analysts predict an imminent Altseson, but history suggests a final color
In the last market cycle, the altcoin and Bitcoin pairs capitulated in June 2019, just before the US Federal Reserve cut interest rates.
The chart pattern of this cycle is identical, and if history rhymes, a similar final flow of altcoins could be imminent before this month’s Fed rate decision on June 12.
However, cryptocurrencies and stock markets it fell late last week on US jobs data, which could also mean the Fed will leave rates alone.
Altseason soon…or not?
Nonetheless, analysts continue to predict it high season it’s just around the corner. On June 8, crypto analyst “Moustache” compared the latest market cycle to the current one, noting similarities in structure and commenting that history doesn’t repeat itself, but it rhymes.
MN Trading co-founder Michaël van de Poppe commented about the recent market correction in a June 8 X post, adding that he was “expecting a bullish breakout in the coming week” and that he was “still happily positioned” in altcoins.
Meanwhile, “Mister Crypto” told his 120,000 X followers on June 8 that the Bitcoin season appears to have “bottomed out” and that the altseason could begin soon.
Sector observer ‘Viktor’ shared a similar chart on X, which states: “We are at the same point as October 2023 and the April 2 crash.”
Bitcoin market dominance is a solid indicator that the altcoin rally is approaching. It is currently at 55.2% after rising almost 8% since the beginning of the year, second at TradingView.
However, Bitcoin dominance needs to fall below 50% before any altseason hopes can truly materialize and that doesn’t look to happen for a while yet.
Altcoins remain bearish
Many have been keeping an eye on Ethereum as it usually leads any altcoin rally. However, ETH has also retreated in recent days, losing 3.3% over the past week, plunging to $3,680 in early trading on June 9.
Altcoins have arrived more pain at the moment, with a sea of red across the board this weekend and heavier losses for Toncoin (TON), Shiba Inu (SHIB), and Near Protocol (NEAR).
If the Fed leaves interest rates between 5.25% and 5.50% next week, cryptocurrency markets, particularly altcoins, could see more volatility and pain before any significant gains.