- Over the weekend, the crypto market began to recover from its largest retrace of the current bull cycle, with Bitcoin and altcoins dropping to levels not seen since February.
- Analysts are optimistic about the future of the cycle, predicting that an altcoin season could be on the horizon.
- Key indicators suggest that the altcoin market cap is preparing for an explosive rally, similar to those seen in 2016 and 2020.
After a significant market correction, crypto analysts are predicting a potential altcoin season. The altcoin market cap is showing signs of a major rally, similar to those seen in previous cycles.
Is The Correction Phase Over?
Crypto analyst and trader MilkybullCrypto shared his belief that the altcoin market capitalization is at an RSI level that could trigger an explosive rally. His analysis suggests that this level is a “reset for a healthy rally,” with similar conditions in 2016 and 2020 leading to significant market surges.
Altcoins Poised for Explosive Rally
According to Milkybull, the altcoin market cap has completed a “healthy retest,” similar to the correction seen in the 2020-2021 rally before reaching all-time high levels. If history repeats itself, we could be on the brink of another explosive rally for altcoins.
Altcoins “Cool-Off” Or “Euphoria” Incoming?
Analyst and trader Rekt Capital suggests that the altcoin market cap, excluding the top 10 cryptocurrencies, has successfully retested the $250 billion level as a support level. This could indicate that the market is preparing for a significant upward movement.
Market Predictions for Altcoins
While some analysts believe that the altcoin market may need to cool off, others predict that we are on the verge of a “euphoria phase.” Crypto Yhodda, for example, predicts that altcoins will see significant gains by the end of 2024.
Conclusion
While the crypto market has experienced a significant correction, analysts are optimistic about the potential for an altcoin season. Key indicators suggest that the altcoin market cap is preparing for an explosive rally, similar to those seen in previous cycles. However, as always in the crypto market, these predictions are not guaranteed and investors should conduct their own research before making any investment decisions.
