Is ‘Altseason’ Opening Soon? Some Traders Say Yes
- Prominent traders signal the potential for a major positive altcoin movement.
- Altseasons' often occur 6-12 months after a $BTC halving.
- A focus on altcoins with strong narratives and emerging markets, like artificial intelligence (AI) or real-world assets (RWA), could propel the next altcoin bull run.
Flashing lights and can't-miss-it market signals. With altcoins on the move, some traders see signs of an impending altseason' for big gains.
What signs are they looking for?
Looming Bullish Pattern Indicates Potential RallyA prominent trader, Luke Martin, claims altcoins are at a prime accumulation phase, suggesting they are at sell your house to buy more' levels. Martin compares the current altcoin market to Bitcoin's 2020 surge, indicating potential for significant gains.
His analysis suggests the altcoin market cap is forming a bullish pattern, indicating the potential for an upside rally.
This is despite recent declines from leading altcoins like $TON, $SOL, and $XRP, as well as continued FUD on the Crypto Fear & Greed Index.
One reason for optimism? The continued impact of the $BTC halving event on April 20 this year. Altcoins often lag behind the rest of the market, showing minor movement first before a major altseason with significant gains.
In a way when we look at it, today's cycle doesn't look much different than previous ones.
For those that don't know:
This is the altcoin dominance trendline that accurately predicted every altseason in history.
What's even more remarkable is... pic.twitter.com/VveldVq1vW
- Crypto Nova (@CryptoGirlNova) August 27, 2024
If this year follows previous trends, look for significant movement between 6-12 months after the $BTC halving event.
Look For Strong Narratives This AltseasonAnalysts recommend focusing on altcoins with strong narratives during the current market volatility. Narratives are different crypto talking points or use cases that tokens can be built around.
There's no set definition, and narratives include:
- Real-world assets
- Predictive markets
- Gambling
- Soulbound tokens
- Artificial intelligence
Some of these double as crypto market segments. Others exploded in popularity a little while ago. But all served as a narrative for particular projects.
Looking for a strong narrative for this altseason? There's more than one option.
First are altcoins built around emerging market segments, such as AI coins and tokens built on RWAs. These sectors still suffer volatility but have long-term upside that can provide strong momentum. For example, AI coins declined overnight, but $NEAR gained 2.3%, bucking the general trend and demonstrating strength.
Next up are longstanding meme coins like $PEPE, up 804% on the year, which can count on strong community support and ride the waves of market sentiment in a way few other coins can.
Ride Out Market TurbulenceStrong use cases, enthusiastic communities, and clear potential characterize coins with the ability to ride out market turbulence and benefit from an impending altcoin boom.
Will the current patterns hold? Will Bitcoin's halving in the spring lead to winter altcoin gains?
We'll find out soon enough.
References- CryptoGirlNova (X)
- VentureCoinist (X)
The post Is Altseason' Opening Soon? Some Traders Say Yes appeared first on The Tech Report.