As the upcoming year draws near, certain analysts have predicted a “highly optimistic” 2025 for Altcoins. The market is anticipated to surge shortly and initiate the eagerly awaited “Altseason” after testing a significant support level.
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Altcoins Retrial of Significant Support Level
In light of the recent market activity, numerous Altcoins have faced challenges in achieving notable gains. Nonetheless, several market observers anticipate that the altcoin season will commence as early as January 2025.
Driven by the post-US election surge, the overall cryptocurrency market capitalization, excluding Bitcoin and Ethereum, broke free from a three-year downtrend in mid-November, eclipsing its yearly high of $788 billion. During this month’s upswing, the sector escalated to $1.1 trillion, marking its highest market cap since 2021.
Since then, Altcoins have encountered difficulties over the preceding two weeks, declining nearly 26% as Bitcoin fell beneath the $100,000 threshold but continues to remain above a crucial level despite the recent market activity.
Crypto Jelle emphasized that the sector broke out and retested its “major trendline while eliminating all leverage in the process.” The analyst noted that funding was “fully reset,” market sentiment has reached its lowest point, and the chart appears encouraging, commenting that he is “Very optimistic for 2025.”
He also remarked that Altcoins’ price movement is “very reminiscent” of Bitcoin’s initial major pullback in 2021. According to the chart, the leading cryptocurrency experienced a “strong rally, pullback, lower high, and oscillation below the initial low” before advancing to new heights.
Considering this activity, Altcoins’ retracement appears to be largely concluded, they “should begin to rally soon if this dynamic continues to unfold similarly.” In the same vein, Michaël van de Poppe declared, “The correction is nearly over, and the period for an upward trend is approaching for Altcoins and Bitcoin. Anticipate much to unfold.”
Will Altseason Mirror 2021’s Strategy?
Titan of Crypto stated that Altcoins are poised for an imminent explosion, suggesting that “the grand finale is near.” According to the analyst’s chart, Altcoins have been following a two-year cup and handle pattern, breaking out from the upper boundary of this pattern during the recent market peaks.
According to this model, Altcoins, excluding ETH, could experience a 200% increase, reaching a market capitalization of $1.4 trillion, surpassing the 2021 peak of $1.13 trillion. The analyst also illustrated that, prior to its rally in 2021, the sector exhibited a parallel performance.
In 2020, Altcoins surged in November and encountered a considerable 30% decline in early December, followed by a four-week resurgence. Subsequently, they registered a 143% increase in January 2021, leading to three more months of positive candles before experiencing the first significant retracement.
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Correspondingly, they have faced a 26% decrease this December, presently in the third week of the anticipated four-week recovery phase. To the analyst, “The beginning of January could signify the onset of an ‘upward only’ season.”
Lastly, Titan of Crypto added that, throughout the last two cycles, the initial rally of Altcoins lasted between 140 and 175 days, implying that the rally of this cycle could reach a new peak around April or May. If it mirrors the performance of previous cycles, a first upward surge might occur around Q2 2025 before culminating in Q4.
Featured Image from Unsplash.com, Chart from TradingView.com
