Altcoins Season Could Start as Early as Next Week, Here’s Why
Many coins have started to recover in the past 48 hours, with several seeing double-digit gains. There have been multiple reports indicating that altcoins may have finally bottomed out, potentially leading to a spike in their prices.
However, according to analyst TradingShot, this could be more than just a temporary surge for some altcoins but rather the beginning of a broader “alt season” – a period of sustained growth and outperformance compared to Bitcoin.
Historical Relationship Between Altcoin Market Cycles and Bitcoin’s Halving Events
The historical relationship between altcoin market cycles and Bitcoin’s halving events; typically, altcoins tend to bottom out after Bitcoin, which is expected given Bitcoin’s position as the market leader. The analyst pointed out that in the previous two market cycles, altcoins experienced a significant sell-off or “dump” within a specific timeframe following Bitcoin’s halving event.
However, TradingShot noted that the current cycle has deviated from this typical pattern. The analyst observed that the recent altcoin sell-off began in late December 2023, coinciding with Bitcoin’s aggressive rally, which they attributed to the anticipation and subsequent launch of a Bitcoin ETF in January 2024.
Potential Beginning of a New “Alt Season”
TradingShot concluded that based on this analysis, it is highly probable for a new “Alt Season” to begin as early as next week. An “Alt Season” is characterized by altcoins rallying parabolically and outperforming Bitcoin’s gains.
Wrap Up
The recent surge in altcoin prices, coupled with signs of recovery and sustained growth, has ignited speculation among analysts like TradingShot about the possibility of an imminent “Alt Season.” Historically, altcoins have tended to bottom out after Bitcoin, but the current cycle has shown deviations from this pattern.
With various factors indicating a potential shift in market dynamics, including the recent altcoin sell-off coinciding with Bitcoin’s rally, there’s a growing anticipation for a broader altcoin resurgence. If TradingShot’s analysis holds, we could be on the brink of witnessing a period of significant altcoin outperformance, potentially commencing as early as next week. Investors will undoubtedly be closely monitoring market movements to capitalize on potential opportunities amid this evolving landscape.
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