Is Altseason on the horizon? Analysts issue a grave warning that requires a turnaround

One question on everyone’s mind right now is whether altcoins will recover and reach an uptrend in the coming days. Crypto Wolves Analyst said this Bitcoin recently encountered resistance, leading to a 5-6% decline. While this drop is notable, it is not huge. However, altcoins they were hit much harder. Over the past week, Bitcoin has gained 2%, but most of the top 100 altcoins have seen significant declines, many by double digits, with drops ranging from 10% to 21%.

In the same period, Ethereum, which leads the altcoin market, collapsed by 6-7%. This is a bit more than Bitcoin’s decline and reflects the broader tendency for altcoins to underperform. The total market capitalization of altcoins, excluding Bitcoin AND Ethereumfell by 10%, showing a more severe impact on altcoins.

The analyst pointed out that Ethereum breaking below a key support level since May 21 makes the altcoins more vulnerable to further declines if Bitcoin continues to fall. To regain bullish momentum, the market must reverse the current trend

He explained that if the market follows typical patterns, altcoins should start rising soon. He demonstrated that the altcoin market capitalization chart follows a five-stage pattern similar to that of the past: bottoming, rebounding, consolidating, and then reaching new all-time highs.

The analyst also noted that when Bitcoin’s dominance declines, it usually signals the start of an altcoin season. Historically, this occurs after the fourth consolidation phase. If this trend continues, we should soon expect an altcoin season and a parabolic bull market for altcoins. This pattern was also observed in 2017, suggesting it may repeat itself.

Furthermore, he discussed the invalidation points for the current market trends. He noted that if Bitcoin fell below $66,8000, it would be a bad sign, but falling below $61,000 would be a major signal that the trend is broken. For the altcoin market, a weekly candle close below the bull market support band on the total cryptocurrency market cap chart would be the first sign of invalidation. If these levels were to break above, it would suggest that the current uptrend is over.

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