Published on april 25, 2024, 12:36 am
Image source: Fox News
```json [ { "TLDR": "Analysts are seeing signs of an upcoming altcoin season as altcoins, especially memecoins and layer-1 cryptocurrencies, outperform Bitcoin. The surge in the altcoin market capitalization index indicates a potential uptrend, with favorable indicators like the completion of correction phases. However, caution is advised due to recent corrections in altcoins and Bitcoin struggling to maintain crucial support levels." } ] ```
Analysts are pointing to a classic trading pattern and the growth in the altcoin total market capitalization index as evidence of an impending altcoin season. This piece of crypto history comes at a time when Bitcoin is struggling to maintain crucial support at $64,800 following its fourth halving that took place on April 20.
In contrast, altcoins, particularly memecoins and layer-1 cryptocurrencies, have shown better performance than Bitcoin over the past week. This surge has sparked speculation among market participants about whether the much-anticipated altseason is finally upon us.
Altseason refers to a period in the cryptocurrency market where alternative coins experience a surge in value, often outpacing Bitcoin. On April 24th, trader and analyst Moustache noted that TOTAL2, representing the total market cap of altcoins, had completed the ABC-correction phases of the Wyckoff method and appeared to be breaking out.
Investors eagerly await this uptrend in altcoins due to their potential for higher risk-to-reward returns compared to more established cryptocurrencies like Bitcoin. An analysis from entrepreneur and crypto investor Lark Davis highlighted that the altcoin market cap had successfully reclaimed essential support levels provided by the 50-day exponential moving average.
Although there was a setback with Bitcoin losing crucial support on April 24th, a bullish signal emerged from the moving average convergence divergence (MACD) indicator indicating potential upward movement for altcoins.
Despite these positive signs, caution is advised as most altcoins have undergone corrections since reaching highs in mid-March. Additionally, Bitcoin remains 12% below its all-time high above $73,800, with recent fluctuations threatening its stability around $65,000.
Some analysts express skepticism about the current sentiment towards altcoins with sentiments like “pretty low,” raising doubts about the likelihood of witnessing a full-fledged altseason anytime soon. The decline in the altcoin season index by Blockchain Center also suggests that we may not yet be in an official altcoin season phase according to their indicators.
It’s important to note that this article does not offer investment advice or recommendations. Cryptocurrency investments come with inherent risks, and readers are encouraged to conduct thorough research before making any financial decisions.
Original article posted by Fox News
