- A bullish flag pattern has emerged on the weekly altcoin market cap chart.
- Bitcoin rainbow chart suggests BTC is in a “still cheap” phase.
The cryptocurrency market has seen several uptrends this year, but none of them have lasted long. Most of these price increases have been followed by corrections. However, the situation in the last quarter of this year may be different.
This seemed plausible as several factors suggested a long-term bullish cycle, which had the potential to push the market to new highs. Let’s take a closer look at what could suggest a crypto bull rally in the coming months.
Will Bitcoin Lead the Next Crypto Bull Run?
Bitcoin (BTC) It surprised investors by hitting an all-time high of over $72,000 in the first quarter of this year. Ethereum (ETH)The so-called king of altcoins showed strength during the period but failed to test its ATH by a huge margin.
However, BTC soon dropped from that level and is struggling somewhat. For example, in the last 24 hours alone, the price of BTC fell by 5%. transaction $59,097.36.
ETH had a similar fate, witnessing a 7% price drop. At the time of writing, ETH was valued at $2,458.85.
But the coming months could be different, as BTC could be planning a massive rally if historical data is to be believed. Bitcoin has always gained bullish momentum in the months following a halving.
In fact, BTC has always reached its ATH after the halving. To be precise, after the second halving of BTC on July 9, 2016, BTC turned bullish and reached its ATH in December 2017.
Source: Santiment
Similarly, after the third halving on May 11, 2020, BTC gained bullish momentum in October 2020 and reached its ATH a few months later. Since the last halving of BTC occurred in April 2024, it was highly likely that BTC would experience a bullish run in Q4 2024.
Another interesting metric to watch is the MVRV ratio. If we take a closer look at this metric, we can see that it exceeds 30% every time BTC reaches its ATH.
At the time of writing, BTC’s MVRV ratio was 2.92%. This clearly shows that BTC is expecting a price increase in the coming months.
In addition, a look at the Bitcoin rainbow chart from AMBCrypto reveals that BTC is in a “still cheap” phase. The indicator also suggests that investors should consider buying the coin before it turns bullish.
Source: Blockchaincenter
Altcoins are also planning a rally soon.
Generally, the market tends to follow BTC, as it is the largest cryptocurrency. Therefore, if BTC shows a bullish breakout, altcoins are likely to turn bullish as well.
However, altcoins also have a trick up their sleeves that suggests a bullish trend. AMBCrypto took a look at the weekly altcoin market cap charts and a bullish flag pattern was revealed.
Source: TradingView
The bullish pattern emerged in March, and since then, the altcoin market cap has been consolidating within it. If a bullish breakout occurs in the coming months, investors will see a significant increase in the altcoin market cap.
In fact, if a breakout occurs, the altcoin market cap could recover to $1.24 trillion before heading towards an ATH of $1.58 trillion.
However, in the short term, things may not be so good, as there is a possibility that the market cap will fall to the support level of $702 billion. From that level, the market cap graph may bounce and head towards the upper limit of the bullish flag pattern.
The Altcoin Season Index remained in BTC’s favor, recording a value of 24. A number close to or above 75 indicates an altcoin season.
Source: Blockchaincenter
Why Mimecoin has great potential
While most eyes are on popular cryptocurrencies like BTC and ETH, investors should not underestimate Mimecoin, which has shown promising performance over the past few months.
In addition to popular memes such as: Dogecoin (DOGE) and Shiba Inu (SHIB), Solana (SUN)The base Mimecoin has recently gained a lot of popularity.
Read our Bitcoin (BTC) Price Prediction 2024-2025
For reference, Dog Whip Hat (WIF) Since its launch in 2024, it has seen a price increase of more than 800%. PopcatOne of the most recent additions to the SOL meme ecosystem, has performed even better since its launch, with its value skyrocketing by a whopping 4184%.
Therefore, while monitoring the performance of the top cryptocurrencies by market cap, it will be important to also look at how the Namecoin market moves during the next crypto bull run.