The price of Bitcoin (BTC) has had a hard time maintaining its important support level at $64,800 following the completion of its fourth halving on April 20.
In recent days, alternative cryptocurrencies, spearheaded by memecoins and initial layer digital currencies, have surpassed Bitcoin in performance, sparking debate among investors about the potential return of the “altcoin rally” (altseason).
An “altcoin rally” is a term used to describe a period in the cryptocurrency market when alternative coins (altcoins) experience significant price increases and frequently surpass the performance of Bitcoin.
On April 24, according to trader and analyst Moustache’s analysis, the total market cap of altcoins excluding Bitcoin (TOTAL2) had finished correcting in three phases as per the Wyckoff Method, and was now experiencing a breakout.
Enthusiasts of cryptocurrency are hopeful that altcoins will begin to increase in value again, as they offer greater potential for profit relative to the risks involved.
Previously, on April 23 in a post for X, an analyst noted that TOTAL2 broke free from a declining wedge pattern on its monthly chart, mirroring a previous occurrence during the 2020-2021 market trend.
Entrepreneur and crypto investor Lark Davis noticed that the altcoin market cap was once again resting on the significant backing of the 50-day exponentially weighted moving average, as he kept an eye on TOTAL2.
Despite the important backing being shed during the Wall Street opening on April 24, the MACD indicator’s bullish crossover signaled that altcoins were prepared for an upward trend.
Davis said,
“With a bullish MACD crossover, it could be on the brink of something big.”
Despite the recent gains in mid-March, most altcoins have experienced corrections. Bitcoin is currently 12% short of its all-time high at around $73,800, and the sudden price drop on April 24 could potentially push it below $65,000.
According to analyst Daan Crypto Trades, the feeling towards altcoins is quite downcast. He further expressed that there’s growing pessimism among investors regarding the possibility of an altcoin season occurring at all.
Based on Blockchain Center’s altcoin season index, it seems that the performance of altcoins matches a downturn in this index, suggesting that the altcoin season has not yet begun. In simpler terms, when the altcoin season index drops, it appears that altcoins are also experiencing poor performance.
“If 75% of the top 50 coins performed better than Bitcoin over the last season (90 days), it is Altcoin Season.”
Approximately 59% of the top 50 altcoins underperformed Bitcoin over the past 90-day period. As a result, with the current index value being below 75, it signifies that altcoin growth has not yet taken the lead, suggesting that we’re not quite in an “altcoin season” yet.
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2024-04-24 20:07