Altcoins: The Next Big Thing or Just Another Crypto Circus? đŸŽȘ

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As the cosmic wheel of fortune turns (and occasionally gets stuck in a hedge), investors are peering into their crystal balls, waiting for the fabled Altseason to arrive. Opinions are as divided as a particularly contentious family dinner, with some market sages proclaiming that Altcoins (or “Alts” for those who like to sound cool) are primed for a spectacular breakout, while others, including the illustrious Ki Young Ju, CEO of CryptoQuant, are waving their hands in a rather dismissive manner.

Only a Few Cryptocurrencies Will Survive the Altseason Apocalypse

On a fine Friday, Ki Young Ju, the oracle of CryptoQuant, declared that the Altseason has indeed begun. In a thread on X (formerly known as Twitter, because why not?), Ju suggested that this time around, we won’t see a straightforward Bitcoin-to-alt rotation. Apparently, stablecoin holders are now favoring Altcoins, which is a bit like saying that cats have decided they prefer the company of dogs.

According to Ju, Bitcoin has become about as relevant as a floppy disk in a cloud storage world, and its dominance no longer dictates the fate of the Altcoins. Once upon a time, Altcoins danced in sync with Bitcoin, but that particular waltz has been replaced by a rather chaotic mosh pit.

Instead, Ju posits that trading volume is the new king of the hill, with Altcoins currently boasting a volume 2.7 times that of Bitcoin. He also warns that this Altseason is as selective as a picky eater at a buffet, with only a handful of Alts boasting strong use cases and narratives expected to survive the carnage.

Despite the market sentiment being as buoyant as a rubber duck in a bathtub, Ju notes a distinct lack of fresh liquidity, which feels like a PvP fight over a single slice of pizza. Consequently, the Altcoin skirmishes are heating up, with only a select few managing to pump their way into the limelight.

In the grand arena of Altcoin markets, it’s a zero-sum PvP game. While Bitcoin has doubled its market cap, the Alt market cap is still sulking below its previous all-time high, rotating among themselves like a bunch of confused hamsters. Only a few Alts with compelling stories will emerge victorious.

Altcoins: Ready for the Next Round of Shenanigans

Trader Crypto Yoddha, who sounds like a wise sage from a galaxy far, far away, has suggested that Altcoins are “ready for round 2” after their recent escapades. According to his post, the crypto market, excluding the big boys BTC and ETH, is following the playbook from the 2020-2021 saga.

In the last cycle, Altcoins had two legs to their journey towards the mythical cycle top and all-time high of $1.13 trillion. In the “first round,” they broke free from their accumulation period, had a brief re-accumulation nap, and then surged to the previous heights like a caffeinated kangaroo.

After reclaiming their resistance level, Altcoins kicked off “round two,” achieving various new highs before hitting a new cycle top. Yoddha pointed out that the market is finishing the first round, having tested last cycle’s top during the post-election pump, which sounds suspiciously like a political rally.

Analyst Rekt Capital, who presumably has a PhD in market gymnastics, confirmed that the crypto market cap, excluding the top 10 tokens, has completed the second part of its Double Bottom formation. He explained that Altcoins have been consolidating between the $250 billion to $280 billion range since the February 3 correction, which is a fancy way of saying they’ve been sitting around, twiddling their thumbs.

According to the post, Alts must close above $280 billion and retest this level as support to confirm a breakout from their three-week resistance and attempt to reclaim the elusive $300 billion mark, which is about as easy as finding a needle in a haystack made of spaghetti.

Similarly, analyst Carl Runefelt stated that Altcoins have made a parabolic move after breaking out of their two-month descending channel. Alts saw a 120% climb after breaking out of a 2024 multi-month descending channel, which sounds like a lot of climbing for a bunch of digital coins. They must reclaim the $300 billion resistance to break free from this pattern, which is easier said than done.

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2025-02-22 09:06