Cryptocurrency enthusiasts and investors want to know when altcoin season will begin.
Top analysts offer varying perspectives on the timing and indicators that will signal these changes.
We are not in an altcoin bull market yet.
Crypto analyst Miles Deutscher recently shared his insights, highlighting that the market is far from an altcoin bull market. He explained that while Bitcoin is hitting record highs and meme coins are trending, altcoins are significantly underperforming.
“Most retail stores do not hold Bitcoin in large quantities, but as altcoins. And altcoins have been significantly underperforming so far this cycle,” he noted.
Deutscher highlighted several important data points.
- The OTHERS/BTC ratio is lower than in October 2023, indicating weak altcoin performance.
- Since the FTX collapse, only eight altcoins have surpassed their previous highs against Bitcoin.
- YouTube views for Bitcoin are disproportionately low relative to the price surge, suggesting retail apathy.
- The altcoin is still 70% off its previous high, while Bitcoin reached a new high in March.
- Since the price of Bitcoin rose from $27,000 in October 2023, the altcoin has yet to see a sustained upward trend.
Read more: What are the best altcoins to invest in June 2024?
Deutscher attributed the market action to a bitcoin-driven cycle driven by the cash exchange-traded fund (ETF) narrative and strong inflows.
“This has been a cycle driven by the Bitcoin narrative… Certain narratives performed significantly better (the majors lagged behind). Memes, AI and RWA have been the clear leaders in this cycle so far,” he added.
Altcoin season is coming soon
Despite the current scenario, cryptocurrency investor Layah Heilpern pointed out several bullish factors for cryptocurrencies, including the approval of Bitcoin and Ethereum ETFs and celebrity endorsements. She argued that the market was shedding the underdogs and preparing for the next big move.
“Imagine not being optimistic about cryptocurrencies right now. The Winklevoss twins donated $2 million to Donald Trump. Bitcoin and Ethereum ETFs approved. Trump supported cryptocurrency. Half-life is complete. Ethereum is not a security,” Heilpern said.
Meanwhile, CryptoQuant CEO Joo Ki-young and technical analyst Mr. Crypto are showing early signs of the altcoin season. Ju observed that Ethereum’s MVRV ratio is rising faster than Bitcoin, indicating that Ethereum is heating up relative to its on-chain fundamentals.
This could signal an Ethereum-led altcoin season, especially considering the current ETF landscape.
“Given the current ETF landscape, this could be an ETH-only season. Historically, when ETH surges, other alternatives tend to follow.” Written by Ju.
Read more: 11 Cryptocurrencies to Add to Your Portfolio Before Altcoin Season
Given the potential for altcoin season, Michaël van de Poppe is bullish on Chainlink (LINK), citing historical patterns and explaining that he expects a significant rally in the second half of the year. He noted that LINK formed a solid weekly candle at cycle lows, similar to a pattern that has led to significant gains in previous years.
“LINK makes a very nice weekly candle at cycle lows… A similar price pattern occurred the previous year, resulting in a 150% rally. I’m expecting the same,” said van de Poppe.
Meanwhile, Rekt Finance highlighted Polkadot’s entry into the AI race as a bullish indicator. Projects like OriginTrail and PhalaNetwork that leverage Polkadot’s AI technology allow Polkadot to become a central hub for AI projects, potentially increasing their value.
Read more: 10 Best Altcoin Exchanges in 2024
Although analysts differ on the exact timing, the consensus remains that altcoin season is just around the corner. Investors must stay informed and consider market trends and expert insights.
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