Altcoins ‘Starting To Run’ After Reclaiming This Key Level, Altseason Around The Corner?

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As a seasoned crypto investor with over half a decade of experience navigating the digital asset market, I can confidently say that this recent surge in Altcoins is reminiscent of the bull run of 2017. The market capitalization reclaiming levels last seen in April 2022 is a testament to the resilience and potential of Altcoins, particularly with Bitcoin pushing towards its next all-time high.

As I witness Bitcoin surpassing the $90,000 milestone, it seems altcoins are touching new peaks as well. Recently, this sector has regained a significant two-year benchmark, which hints at a potential revisit of last year’s highs. Some analysts believe that the current momentum of altcoins could ignite the long-awaited Altseason.

Altcoins Market Cap Reclaims 2022 Levels

Over the last three weeks, the overall value of the cryptocurrency market has shown exceptional growth, reaching a market capitalization of approximately $3.36 trillion. This upward trend, driven in part by the U.S. elections on November 5, has propelled Bitcoin’s price to a 40% increase, setting its latest record high (new peak) at $99,645.

In a similar vein, Altcoins have been achieving their best returns in years, as tokens such as Cardano (ADA) and XRP (XRP) have broken through the $1 barrier. Furthermore, digital currencies like Solana (SOL) and SUI (SUI) have reached new all-time highs, fueling investors’ optimism for the next phase of the market’s upward trend.

The community has also expressed optimism for the ‘King of Altcoins’ recent performance after Ethereum (ETH) recovered the key $3,300 support zone last week. The crypto market’s performance has led the Altcoins’ market capitalization to hit a two-year high and reclaim key levels.

Significantly, the combined value of cryptocurrencies other than Bitcoin and Ethereum (referred to as Altcoins) recently exceeded its Q1 2024 peak of $788 billion. This surge occurred as Bitcoin breached its resistance at $90,000. As a result, the market cap of Altcoins surpassed the $840 billion mark last week, a level last achieved in April 2022.

After that point, Alts have maintained their value above this threshold even during market downturns, making it a significant support level. Furthermore, it approached the significant resistance level of $984 billion, which was previously set in May 2021, prior to the All-Time High (ATH) of $1.13 trillion for the Altcoin market cap.

Altseason To Start Soon?

As per Bitfinex’s Alpha report, this surge in Altcoins represents their “most significant rise to peak point” since April 2021. The notable 23.2% growth suggests a growing interest among investors, surpassing the levels initially associated with the start of the bear market.

According to Bitfinex analysts, this shift signifies a transition of speculative investment and attention from Bitcoin towards Altcoins as more retail investors get involved. This trend often signals the start of the last phase of the bull market, where Altcoins tend to perform better than Bitcoin collectively.

On Tuesday, crypto expert MikyBull noted that the dominance of Alts (alternative cryptocurrencies) surpassed its trending pattern, moving slightly above it. MikyBull’s graph, which only shows altcoins outside the top 10 in terms of market capitalization, indicated a dominance rate of 10.37%, breaking above a prolonged downward trend line that had been in place for several months.

In my analysis, I’ve noticed signs pointing towards an expected outperformance of Alts in the upcoming weeks. This prediction is based on a significant breakout observed in the Altcoins’ chart, which follows a multi-year cup and handle pattern.

According to him, the Alts (Alternative cryptocurrencies) have begun to surge following their escape from the pattern’s neckline, and investors can expect to fully experience the “height of Altseason” between December 2024 and March 2025.

Currently, Bitfinex predicts that the upward momentum for altcoins might be capped due to resistance around levels last seen in May 2021. However, if they manage to surpass the resistance at approximately $984 billion, it would indicate a resumption of their upward trend.

In summary, Bitfinex’s analysts anticipate that a significant Bitcoin correction might amplify its impact on other cryptocurrencies. They predict, at the very least, a phase of price fluctuations following a week marked by high liquidation figures for both long and short positions in altcoins.

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2024-11-27 09:41