As a seasoned crypto investor with several years of experience in the market, I have witnessed numerous corrections and rallies. The latest correction was indeed a significant one, causing Bitcoin and altcoins to drop to levels not seen since February. However, based on the analysis and forecasts from reputable traders and analysts like MilkybullCrypto, Captain Fabik, Rekt Capital, and Altcoin Sherpa, I believe that we are at the end of this correction phase and that an altcoin season is imminent.
Over the past weekend, I observed the crypto market gradually bouncing back after a significant correction that had pushed bitcoin and altcoins down to prices last seen in February. This corrective phase was the largest dip during this current bull cycle.
As an analyst, I’ve noticed a divide in the crypto community regarding the recent market correction. While some expressed relief and saw it as a necessary pause, others remained upbeat about the potential future developments. Now that the market has bounced back, my analysis suggests that we could be on the brink of an altcoin season.
Is The Correction Phase Over?
During the past weekend, MilkybullCrypto, a renowned crypto analyst and trader, announced to his X number of followers that the altcoin market capitalization had reached a Relative Strength Index (RSI) level believed to trigger an explosive price surge.
According to his graph, this point signifies a “restart for a robust uptrend,” based on what transpired in 2016 and 2020. In those prior occurrences, the altcoins reached this stage, which was then followed by a significant price surge.
As a crypto investor, I closely follow the market analysis provided by experts. On Monday, the analyst revealed his newest prediction after noticing the market’s resilience during its recovery phase. To me, the altcoin market cap underwent a “re-testing of its heat” following a previous surge.
As a researcher studying market trends, I’ve noticed that the market behavior during the 2020-2021 rally bears a striking resemblance to its previous correction before reaching all-time high (ATH) levels. The chart indicates a similar pattern, implying that altcoins might be gearing up for another explosive rally if historical trends hold true.
Captain Fabik, a seasoned crypto trader and analyst, expressed his viewpoint in a recent post that “the healthy correction has come to an end.” He went on to point out a bullish falling wedge formation in his analysis, suggesting that “an uptrend is imminent” or “a rally is about to take place.”
Altcoins “Cool-Off” Or “Euphoria” Incoming?
Based on the observations of analyst and trader Rekt Capital, the collective market value of altcoins, or those cryptocurrencies outside the top 10 by market capitalization, has recently bounced back at the $250 billion mark as a source of support during the past few weeks.
According to the trader, the altcoins are adhering to his “Ultimate Altcoin Market Cap Roadmap for the Next Few Months” proposed by Rekt Capital. Based on this roadmap, the altcoins’ market cap is predicted to reach $315 billion before experiencing a pullback to around $250 billion. Following this retracement, there is expected to be a significant surge in market capitalization, surpassing the $440 billion threshold.
Despite the significant price corrections, altcoins have managed to maintain their value above the $250 billion mark, as illustrated in the following chart. This observation from analysts indicates a potential attempt by the market to begin recovering.
As a researcher studying the cryptocurrency market, I’ve noticed that some prominent figures have voiced their “frustration” with the underperformance of altcoins during this market cycle. In my analysis as an Altcoin Sherpa, I’ve observed that many alternative coins didn’t put in significant effort over the last few months. This could be a sign that we’re due for a “pause” or “break” in the altcoin market. Based on my assessment, I believe that the altcoin rally has “run its course” and may not regain momentum for the next 1-4 months.
As a researcher studying the cryptocurrency market, I’ve come across various perspectives regarding the future of altcoins. While some argue that we’re yet to experience the “euphoria phase,” others are more optimistic. One such voice is Crypto Yhodda, who forecasts a significant surge in altcoin prices by the end of 2024. He refers to this upcoming trend as “Altcoins Cycle III” and predicts some remarkable price pumps during this period.
Based on his graphical analysis, the patterns of the altcoins’ price movements in cycles I and II exhibited a symmetrical triangle structure prior to their respective breakouts. After the initial surge, there was a slowdown, which was later referred to as “Round 1,” before the upward trend resumed once again.
Afterward, the rally followed a similar path during its second iteration, ultimately peaking in “Cycle III.” The current phase of Cycle I seems to be situated midway through Round 1, indicating to analysts that there is still much ground to cover before reaching the exuberant stage.
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2024-05-06 23:10