Altcoins
Analysts predict the arrival of an “explosive rally” of Altcoins
Over the weekend, the crypto market began to recover from the the greatest comeback of this bullish cycle. The sharp correction sent the Bitcoin and altcoin market tumbling to levels not seen since February.
While some sectors of the crypto community believed the bull run was over or needed to “calm down,” others seemed optimistic about the future of the cycle. Now that the market has returned from the correction, analysts predict that altcoin season could soon arrive.
Is the correction phase over?
Over the weekend, crypto analyst and trader MilkybullCrypto sharing with its X subscribers that the market capitalization of Altcoins was at “an RSI level which initiates an explosive rally”.
According to his chart, this level is a “reset for 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 forecasts on Monday after seeing the market strengthen its recovery. For Milkybull, the altcoin market cap has completed a “warm retest.”
The market displayed a similar correction during the 2020-2021 rally before skyrocketing to record highs (ATH). The chart appears to show the same performance, which could mean that altcoins are “primed for an explosive rally,” if history repeats itself.
Altcoins resembling performance between cycles. Source: MilkybullCrypto
Likewise, cryptocurrency trader and analyst Captain Fabik considered “Sound Correction is Done”. In his article X, the analyst identified a bullish falling wedge pattern, which signals an “impending bull rally.”
“Cool-Off” or “Euphoria” Altcoins Inbound?
According to analyst and trader Rekt Capital, Altcoin’s market capitalization, excluding the top 10 cryptocurrencies, has “successfully retested the $250 billion level as a support level” over the past few weeks.
According to the trader, altcoins are following the proposed path for its “Ultimate Altcoin Market Cap Game Plan for the Months to Come.” As part of this plan, Rekt Capital predicted that the altcoin market capitalization would reach the $315 billion level before returning to the $250 billion mark. This retracement would be followed by an explosive surge above the $440 billion market cap.
Altcoins remained above the $250 billion support zone despite the sharp corrections, as shown in the chart below. For the analyst, this suggests that the market is now “showing the first signs of attempting to recover from here.”
Ultimate Altcoin Market Cap Game Plan For The Coming Months. Source: Rekt Capital
Renowned figures have expressed their “disappointment” with the performance of altcoins during this cycle. Sherpa Altcoin considered that “many alts haven’t even been working that hard over the past few months”, which might suggest it’s time to “calm down”. At the time, the analyst considered the altcoin rally “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.” Moreover, the analyst believes that “Altcoins Cycle III” will give us crazy pumps.
According to his chart, Cycles I and II of altcoins displayed a symmetrical triangle pattern before the breakout. The rise was followed by a slowdown before the upward trajectory continued, called “Round 1” by the analyst.
Subsequently, the rally would repeat the trend in a second round before reaching the peak of the cycle. “Cycle III” appears to be in the middle of the first round, suggesting to the analyst that there is a long way to go before he “reaches 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