The crypto market often experiences frequent optimistic, pessimistic, or neutral predictions that usually come true or may go off the rails, depending on market dynamics. Like how Bitcoin’s(BTC) price history sparks a surge in October (often known as Uptcober), a decent number of altcoins have also undergone repeated hikes in the previous years, called Altseason.
So, What is an Altseason?
Altseason or Altcoin season happens when all coins other than Bitcoin perform well in terms of price. It could be a short period where crypto investors place more demand on altcoins rather than considering Bitcoin. It is a rapid capital shift from BTC to other altcoins, leading to a decline in Bitcoin’s dominance. Additionally, during this period, BTC moves sideways; price movements stabilize and trade between horizontal resistance and support levels.
Notably, investors tend to shift their funds from BTC into various altcoins in search of potentially higher returns from the coins.
What do analysts predict about the altcoin season?
As a crypto analyst by the X account name Ash Crypto posted, Altcoins have spiked after every “bear trap” repeatedly following the trends in 2017, 2021, and will perhaps follow the same trajectory this year.
The price history of altcoins shows an upward trajectory. Source: Ash Crypto
Reports reveal that the approval of exchange-traded funds (ETFs) for spot Ethereum and anticipated ETF approval for altcoins such as XRP and Solana (SOL) in the US market could benefit from growing crypto market hype. If regulators, including the Securities and Exchange Commission (SEC), recognize altcoins as legitimate investments, it could potentially bring more investors into the altcoin market. That’s not all, the reduction in retaliatory traffic by Trump’s administration would also make altcoins fruitful.
The price history of altcoin dominance. Source: Blockchain Center
Now, look at this altcoin season index chart prepared by Blockchain Center. The previous price movements of altcoins insinuate that every time the price hit the index 18, the coins surpassed the BTC dominance, reaching a level of up to 80.
Another analyst and trader predicts that altseason will perhaps happen on April 21.
In the future, if altcoins experience a significant trading volume and market capitalization, their price would rise, inviting more investors.
While the outlook is promising, altcoin price patterns may also become a classic butter toast phenomenon, meaning, it may plummet if major economic factors prevail. To put it all together, altcoin season has dominated several times in the past years, however, the same pattern may not necessarily follow as such, due to unexpected global factors.
To note, as a potential altcoin cycle may approach, experts advise investors to secure their wallets as a prevention against increasing theft and hacking. Scammers and hackers keep alert, specifically during crypto bull runs, expecting more funds in crypto wallets.
