Altcoin Market Can See Final Flush Out before Altseason Begins

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As a seasoned crypto investor with over a decade of experience navigating the volatile waters of the digital asset market, I have learned to always expect the unexpected and prepare for various scenarios. The recent price retracement of Bitcoin under $70,000 and the strong correction in the altcoin market has me bracing myself for more turbulence ahead.

With Bitcoin‘s price dipping below $70,000, the altcoin market is experiencing a more intense downturn. The cryptocurrency market is preparing for potential volatility in the wake of the upcoming U.S. election results and the Federal Reserve’s interest rate decision this week.

According to Benjamin Cowen, founder of ITC Crypto, the altcoin market may experience further difficulties before the ‘altseason’ resumes. Moreover, he forecasts a significant event called the ‘final altcoin showdown’ by December 2024. Essentially, Cowen expressed on the X platform that it seems like we are nearing the culmination of the ‘altcoin showdown’.

In addition, Cowen anticipates that the period of decline for altcoins will conclude no later than the second week of January 2025. He stated, “It’s been a prolonged trip, and some dropped out during the journey, but this development was bound to unfold.

The prediction is based on a pattern similar to a significant dip (or “flush-out”) in the altcoin market during the 2019 bear market. Cowen notes that the current altcoin market capitalization charts show a comparable trend. If this pattern repeats, as suggested by the analyst, altcoins could experience a recovery starting around 2020, reach new peaks in 2021, and potentially see another rise in 2025.

Altcoins Face Major Correction against Bitcoin

On a different thread within the X platform, Cowen noted that the relationships between ALT and BTC coins have consistently declined for close to three consecutive years. Additionally, he pointed out that the last two ‘altseasons’ took place in the years following halvings, specifically in 2017 and 2021.

In a recent post on November 4th, the trader known as “ardizor” made a prediction similar to one he made before, stating that the current altseason appears to be repeating patterns seen in both 2017 and 2021. Meanwhile, crypto investor “Sensei” told his 60,000 followers on platform X that we can expect the biggest altseason yet to begin within the next ten days.

Currently, Bitcoin’s influence in the overall cryptocurrency sector has soared to a high of 60.5% since last year in March, making it difficult for alternative coins (altcoins) to make substantial moves until Bitcoin’s control over the market drops below 50% once more.

Over the weekend, I noticed a pullback in the crypto markets, which saw the total capitalization drop to approximately $2.4 trillion by November 4th. The majority of the losses were shouldered by altcoins such as Ether and Solana. Specifically, ETH dipped 11% from its October 30th peak, currently trading at around $2468, while Solana (SOL) also fell by 11%, now standing at roughly $163. In contrast, Binance Coin (BNB) experienced an 8% decrease, with its current value at about $560.9. However, Bitcoin has only dipped 5.8% since reaching $73,000 late last month, maintaining its dominance in the crypto market.

In light of this divisive U.S. election week, cryptocurrency traders anticipate unpredictable market movements. This sentiment is especially prevalent among large Bitcoin investors, who have recently seen a decrease in transfer activity.

— Santiment (@santimentfeed) November 4, 2024

Based on Santiment’s analysis, crypto traders are preparing for potential market turbulence this week due to the imminent U.S. election results. Notably, large Bitcoin investors seem to be on high alert, ready for unforeseen events. The activity of these “whales” has decreased significantly since last week’s surge in transfers, which happened around Bitcoin’s recent peak, suggesting caution among significant Bitcoin holders.

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2024-11-04 13:25