Altcoins
Is the next Altcoin season approaching? Some traders believe so
Last updated: April 29, 2024, 5:26 p.m. EDT | 1 minute reading
As Bitcoin shows signs of consolidation, anticipation is building around a potential new altcoin season.
The recent price movement has sparked discussion and speculation among traders about the possibility of an upcoming altcoin season.
Is the Bitcoin price recovery enough to fuel the next Altseason?
Ahead of the weekly close on April 28, Bitcoin surpassed $64,000 and data points to strengthening Bitcoin price over the weekend.
At the time of writing, Bitcoin is hovering around $62,600, while the altcoin’s total market cap has seen a modest 1% increase, hinting at a potential positive trend for these cryptocurrencies alternatives.
Trader and commentator Mustache predicted a full-fledged altcoin season, rivaling anything since the all-time highs of 2017.
In response to altcoin activity, ppopular X-rated trader Skew (formerly Twitter) that “Alts have rebounded well, but it remains crucial to break the trend of setting weekly highs on Mondays and Tuesdays.”
Skew suggested that there is a possibility of sell-side pressure hampering Bitcoin’s progress towards its near highs.
The trader suggested that Tether was trying to reclaim its position after falling below an ascending trendline earlier this year. This drop was just a backtest.
According to his statement, there is an inverse relationship between the value of USDT (Tether) and the value of altcoins.
Ethereum’s possible contribution to the next Altcoin season
The price of Ethereum has seen a substantial decline over the past six months due to skyrocketing gas prices.
ETH has fallen 10.46% this month alone from its April 9 high of $3,722.
Over the past week, Ether saw a slight increase of 4.3% in the market, but still not enough to rebound.
Analysts at crypto analytics platform Santiment have suggested that the Ethereum gas fees drop could potentially signal an upcoming altcoin season.
🤑 #EthereumThe average fee level dropped to just $1.12 per network transaction, the lowest single-day average cost since October 18.
Traders historically move between sentimental cycles of feeling that #crypto goes “To the Moon” or feels like “He’s dead”, which can… pic.twitter.com/8b8rLMLyIf
–Santiment (@santimentfeed) April 28, 2024
According to Santiment’s post X, Ethereum’s average transaction fees have fallen to $1.12.
Santiment predicts a faster than expected recovery for Ethereum and related altcoins due to the recent retracement and reduced demand on the network.