Analysts are expecting Ether and altcoins like XRP to stage a significant rally leading into Trump’s inauguration on Jan. 20, which also marks the last day of SEC Chair Gensler.
As Bitcoin continues to move above the $90,000 mark, Altcoins began to reach new highs. The sector has recently reclaimed a key two-year level that could set the stage for a retest of 2021’s highs. Some analysts consider that Altcoins’ recent performance could kickstart the long-awaited Altseason. Related Reading: How High Can XRP Price Realistically Go After Gensler’s Resignation? Altcoins Market Cap Reclaims 2022 Levels The total crypto market has seen a remarkable performance for the past 21 days, jumping to a market capitalization of $3.36 trillion. This surge, fueled by the US elections on November 5, has led Bitcoin’s price to a 40% increase to its latest all-time high (ATH) of $99,645. Similarly, Altcoins have started to record their best performance in years, with tokens like Cardano (ADA) and XRP (XRP) surpassing the long-awaited $1 mark. Meanwhile, cryptocurrencies like Solana (SOL) and SUI (SUI) hit new ATHs recently, igniting investors’ bullishness for the cycle’s second leg up. The community has also expressed optimism for the ‘King of Altcoins’ recent performance after Ethereum (ETH) recovered the key $3,300 support zone last week. The crypto market’s performance has led the Altcoins’ market capitalization to hit a two-year high and reclaim key levels. Notably, the total cryptocurrency market cap, excluding Bitcoin and Ethereum, surpassed the Q1 2024 high of $788 billion as BTC soared past the $90,000 resistance. The momentum led the Altcoins market cap to break above the $840 billion mark last week, a level not seen since April 2022. Since then, Alts have held above this range despite the market retraces, turning this horizontal level into support. Additionally, it neared May 2021’s high of $984 billion, a crucial resistance level ahead of the Altcoins market cap ATH of $1.13 trillion. Altseason To Start Soon? According to Bitfinex’s Alpha report, this marks Altcoins’ “largest through-to-peak move” since April 2021. The 23.2% increase hints at an increasing investor appetite, leaving behind the previous “start of the bear market” levels. This movement “indicates a rotation of speculative capital and interest from Bitcoin into Altcoins as retail market participation increases,” the Bitfinex analysts explained, which tends to mark “the onset of the final stage of the bull market where altcoins begin to outperform Bitcoin on an aggregate basis.” Crypto analyst MikyBull pointed out that Alts dominance “just climbed above the trend ribbon” on Tuesday. The analyst’s chart, which excludes the top 10 cryptocurrencies by market cap, displayed Altcoin’s dominance at 10.37%, breaking above the multi-month downtrend line. Per the post, this has indicated before that “Alts are about to outperform in the next coming weeks.” Similarly, he highlighted a breakout from a multi-year cup and handle pattern in the Altcoins’ chart. To him, the Alts have started running after breaking out from the pattern’s neckline, and investors will see the “full potential of the Altseason” from December to March 2025. Related Reading: Polygon: Analyst Sets ‘Wild’ Price Target Amid POL’s 38.2% Weekly Surge Meanwhile, Bitfinex forecasted that “lower timeframe upside seems to be limited for altcoins” due to its resistance at May 2021 levels. Nonetheless, the report noted that breaking above the $984 billion resistance would signal a continuation of altcoins ascend. Ultimately, Bitfinex’s analysts consider that a larger Bitcoin correction could have a “magnified” effect on altcoins, and they expect, “at minimum, a period of ranging after a week full of consistently high liquidation numbers for both longs as well as shorts for altcoins.” Featured Image from Unsplash.com, Chart from TradingView.com
The crypto market has been on an uptrend following the US elections in early November. In particular, the altcoins have responded quite positively to the election of pro-crypto candidate Donald Trump as the next US President. Related Reading: Wyckoff Cycle Shows Where We Are In The Market And When Altcoin Season Will Begin XRP, ADA, TON, Others Stand Out Amidst Bullish Altcoins Performance In its weekly report on November 22, blockchain analytics firm CryptoQuant reported that several altcoins have experienced large price spikes after the US Presidential election on November 5. The analytics firm reports that daily spot trading volume in the altcoin market reached $18 billion on November 11, the highest since early August, indicating an increased market interest in these tokens. CryptoQuant explains that these positive developments in the altcoin market hinges on general expectations of a friendly regulatory approach by US President-elect Donald Trump who continuously declared intentions to support the digital asset industry during his electoral campaign. In particular, CryptoQuant highlights XRP as one of the best-performing assets since the US Presidential elections. The sixth largest cryptocurrency has risen by 154% to $1.45 in the past two weeks, which has coincided with a record-high DEX volume of $3.5 million on the XRPL network. Aside from XRP, Tron (TRX) has also grabbed market attention reaching a new all-time high of 10 million daily transaction count as USDT supply on the blockchain network moved above the $60 billion mark. TRX has gained by 25% since November 5 rising to $0.20. Furthermore, Toncoin (TON) has experienced a market rebound rising by 27% since the elections to reach a local peak of $5.75. Importantly, Toncoin maintains a high network activity as evidenced by its 1 million daily active addresses compared to the 60,000 recorded at the start of 2024. Other altcoins in CryptoQuant’s report include Solana (SOL) and Cardano (ADA) which have gained by 62.42% and 206.06%, respectively since Donald Trump’s electoral victory. Related Reading: Bitcoin Dominance Sliding Below This Level Could Signal Start Of Altseason, Trading Firm Says Is The ‘Altseason’ Here? The altcoins appear poised to maintain their current bullish performance as several analysts believe the ‘altseason’, a period where altcoins experience significant price surges and outperform Bitcoin, has commenced. Ash Crypto on X noted that altcoin dominance has exited its accumulation phase and is now trending upward, signaling the early stages of altseason with full market effect expected to materialize in 2025. Similarly, fellow analyst MikybullCrypto shares this view, identifying December 2024 to March 2025 as a potential period for major price surges in the altcoin market. At the time of writing, the crypto market is valued at 3.3 trillion with altcoins representing 40.8% of this value. Featured image from PlasBit, chart from Tradingview
Ethereum (ETH) price is finally moving after a week of sideways movement. In the last hour, the second-largest crypto has seen a 5% surge to retest the key $3,200 level. Some market watchers believe ETH is about to move toward Q1 highs and kickstart the altseason. Related Reading: Crypto Community’s Revenge: Solana Memecoin Rug-Pulled By Gen Z Trader Hits $80 Million Market Cap Ethereum Retests Key Support Level Ethereum has been heavily criticized for its performance against Bitcoin (BTC), with investors worrying that ETH might not run to new highs this cycle. ETH’s price action has moved sideways while the flagship crypto continues its price discovery mode. On Thursday morning, BTC neared the $100,000 mark after hitting its latest all-time high (ATH) above $98,000, while ETH continued hovering in the mid-zone of its $3,000-$3,200 one-week price range. However, Ethereum has seen a remarkable 5% pump to trade above the $3,200 mark for the past hour. The second-largest crypto rose above $3,200 a week ago for the first time in over three months, hitting the $3,400 mark before retracing 5%. Over the past week, ETH attempted to reclaim the $3,200 resistance as support but failed twice to achieve it. Today, the cryptocurrency’s jump has propelled its price past the key resistance toward the mid-range of the $3,300 zone, reigniting a bullish sentiment toward Ethereum. Analyst Crypto Yapper asserted that the $3,200 is “the next big breakout” for Ethereum, as it has been a major rejection point for the last week. The analyst highlighted that after ETH’s consolidation, the next move was a retest of this level, which could see the crypto breakout toward the $3,500 mark if successfully reclaimed. However, failing to turn this resistance into support could likely see ETH’s price lose the $3,000-$3,100 support and move toward the $2,600 level, a major resistance before this month’s breakout, before attempting to reach $3,500. ETH’s Breakout To Kickstart The Altseason Crypto analyst Rekt Capital noted that ETH is breaking out of a short-term bull flag today. Per the post, the King of altcoins broke out of a three-week bull flag formation after surpassing $3,200. A confirmation of the breakout “would see ETH revisit the $3,700 above,” forecasted the analyst. Similarly, crypto analyst Zayk pointed out that the cryptocurrency displayed a two-week bullish pennant formation in the 4H timeframe. A successful breakout from the bullish pattern above the $3,200 mark could target a 15% rally to $3,700. Related Reading: Aptos Following SUI’s Lead? Analyst Says APT’s ‘Explosive Breakout’ Targets $20 Crypto trader Daan stated that investors should wait to see if Ethereum’s current momentum sustains. However, he considers that the next impulse for ETH/BTC is “likely to have some legs and go for some proper relief.” This run could see the ETH/BTC trading pair move back toward the 0.04 mark, which it traded at two weeks ago. This move would display a 20% surge from the current levels, which “should absolutely send the overall altcoin market and bring BTC Dominance down a decent amount.” As of this writing, the ETH’s price holds above $3,350, trading 2% below last week’s high. Featured Image from Unsplash.com, Chart from TradingView.com
As Bitcoin (BTC) reached a new all-time high (ATH) of $98,310 today, the ETH/BTC trading pair fell to multi-year lows, raising questions about the relative strength of Ethereum (ETH), the second-largest digital asset. What’s Causing Ethereum’s Underperformance Against Bitcoin? Bitcoin’s new ATH earlier today brings it within $2,000 of the coveted $100,000 mark. However, BTC’s sustained dominance has resulted in the underperformance of altcoins, particularly Ethereum, throughout the year. Related Reading: Ethereum Could Be Set To Explore New Highs As On-Chain Metrics Light Up The weekly chart below reveals that the ETH/BTC trading pair has dropped to a multi-year low of 0.0331 – a level last seen in March 2021. Since December 2021, the pair has failed to form a new higher high, reflecting a decline of over 60%. The pair’s losses have accelerated since July 2024, coinciding with Bitcoin’s price surge, driven by rising optimism over pro-crypto Republican candidate Donald Trump’s prospects in the U.S. presidential election. The success of Bitcoin exchange-traded funds (ETFs) has also contributed to institutional preference for BTC over other cryptocurrencies. At present, BTC ETFs hold more than $100 billion in total net assets. While Ethereum ETFs have also received regulatory approval, they haven’t matched the success of their Bitcoin counterparts. For instance, US-based spot Ethereum ETFs have accumulated only $8.96 billion in total net assets so far. Additional factors, such as Bitcoin’s halving in April 2024 – reducing miner rewards from 6.25 BTC to 3.125 BTC—have further reinforced BTC’s supply scarcity narrative. In contrast, Ethereum’s rising issuance rate has led some experts to question its “ultrasound money” status. Additional factors such as Bitcoin halving in April – which slashed miner rewards from 6.250 BTC to 3.125 BTC – further reinforced the digital asset’s supply scarcity narrative. In contrast, Ethereum’s rising issuance rate has led some experts to question its “ultrasound money” status. When Will Ethereum Recover Losses Relative To BTC? With the ETH/BTC trading pair hitting new lows, Ethereum traders are eager to know when ETH might recover its losses. Several analysts have shared their views on X. Related Reading: Last Chance To Buy Ethereum? Analyst Expects $6,000 Once It Breaks 8-Month Accumulation Crypto analyst @CryptoGemRnld recently identified two strong support zones: a trendline support and a demand box zone. According to the analyst, since 2017, the ETH/BTC pair has historically rebounded from these levels, often leading to altcoin seasons. Similarly, seasoned trader Peter Brandt has suggested that the ETH/BTC ratio may be approaching its bottom. Brandt’s analysis predicts a potential reversal in December, with the trading pair beginning an upward trajectory. Supporting this outlook, recent data indicates that ETH may be undervalued at current prices. The limited inflow of ETH to exchanges, coupled with a lack of significant profit-taking, suggests that ETH bulls are holding out for further gains. Additionally, spot ETH ETFs have been recording significant inflows, attracting over $515 million between November 9 and November 15. At press time, ETH trades at $3,333, up 7.4% in the past 24 hours. Featured image from Unsplash, charts from Tradingview.com
Bitcoin‘s recent upside strength has sparked speculations within the crypto community about its move to the $100,000 level and beyond in the current market cycle as many crypto experts predict that the digital asset could witness a rally to the price range shortly. Bitcoin’s Path To $100,000 And Beyond Inevitable As the community anticipates Bitcoin’s […]
Bitcoin (BTC) continues its historic price trajectory, trading in the low $90,000 range at the time of writing. However, a trading firm suggests that Bitcoin dominance (BTC.D) falling below a crucial level could signal the start of the long-anticipated altcoin season. Interest Rate Cuts, Trump Administration To Propel Crypto In a recent Telegram broadcast, Singapore-based trading firm QCP Capital shared its crypto market analysis. The firm highlighted Solana’s (SOL) recent performance, noting that it outpaced Bitcoin and Ethereum (ETH) over the weekend, surging more than 17% from Friday’s lows. Related Reading: Bitcoin’s Market Is Still In An ‘Healthy Growth’ Phase, Says Analyst—Here’s Why Despite this, QCP Capital acknowledged that many investors remain hesitant to embrace the prospect of an imminent alt season, given Bitcoin’s steady climb toward the psychologically significant $100,000 mark. Rekt Capital’s analysis supports this sentiment, suggesting BTC is just beginning its parabolic phase. QCP Capital, however, predicted that a combination of Donald Trump’s victory in the US presidential election and interest rate cuts by the Federal Reserve (Fed) could set the stage for a full-blown altcoin season in the coming months. Trading Firm Identifies Key Bitcoin Dominance Threshold For Altseason According to QCP Capital, altcoins historically outperform major cryptocurrencies once the latter consolidate after significant rallies. The firm explained: Historically, we’ve seen altcoins outperform whenever the majors consolidate after a significant rally as profits rotate into smaller-cap coins. BTC’s dominance is around 60% now and it will probably need to be around
Both retail and institutional adoption and interest in Bitcoin continue to see notable growth following the recent price upswing over the past week, which has led to a huge rise in BTC’s dominance over other cryptocurrency assets in the market. Bitcoin’s Market Dominance Almost Over With Bitcoin persistently witnessing a significant price rally, its dominance […]
Trader and investor Michaël van de Poppe says many in the crypto community underappreciate the impact of America’s ballooning debt.
The crypto market is recovering from this week’s brutal sell-off, and analysts say 3 key metrics suggest an altcoin season could be on the way.
An analyst has pointed out two patterns forming in altcoin and Bitcoin-related charts that could suggest an altseason may be coming soon. Signs May Finally Be Aligning For An Altcoin Season In two new posts on X, analyst Ali Martinez has discussed some signals that could foreshadow an altcoin season. The first chart shared by the analyst is for the combined altcoin market cap, which is simply the combined cryptocurrency market cap excluding Bitcoin and Ethereum. The graph shows that the total altcoin market cap has been forming a pennant recently. The pennant is a pattern in technical analysis (TA) with two components: a pole made up of the prevailing trend and a triangle or “pennant” representing consolidation. In the case of the current pennant, the sharp uptrend that the altcoin market cap saw between Q4 2023 and Q1 2024 makes up for the pole portion, while the downtrend since then corresponds to the pennant. This type of pennant is popularly called a bull pennant. Related Reading: Bitcoin Could Reach $108,000 To $155,000 By 2024 End, Analyst Reveals Why As is apparent in the chart, the altcoin market cap has recently been making another retest of the upper channel of the pennant. It might see a significant rally if it manages to break the resistance this time. Pennant breakouts can be the same length as the pole, so Martinez notes that the altcoin market cap could end up crossing the $1 trillion mark. Naturally, this would only be if a break does happen. The analyst sounds optimistic, though, saying, “it is just a matter of time before #altcoinseason!” The second chart that could hint towards the oncoming of an altcoin season is the market cap dominance of Bitcoin. “Market cap dominance” here refers to the percentage of the total cryptocurrency market cap that BTC accounts for. Here is the graph for this metric shared by Martinez, which shows the pattern that has been forming in its value recently: The Bitcoin market cap dominance appears to have been moving in a rising wedge pattern recently. The rising wedge is another TA pattern, but unlike the bull pennant forming in the altcoin market cap, this formation is considered bearish. In a rising wedge, the asset’s price moves up between converging trendlines, with its movement getting narrower as it approaches the apex. As is visible in the chart, the Bitcoin market cap dominance is nearly at the end of the rising wedge, which suggests a break under the lower channel may happen soon. Related Reading: Bitcoin Hype Remains Low Even After $63,000 Surge: Green Sign For Rally? The metric has a value of 57%, but the analyst notes that this bearish formation could lead to a dip toward the 47% mark, which would set the stage for the altcoin season. BTC Price Bitcoin’s surge has calmed down over the last few days as the asset has taken sideways movement around the $63,500 level. Featured image from Dall-E, charts from TradingView.com
In a detailed post on X, crypto analyst Jamie Coutts outlined various indicators he monitors to gauge when the market might pick up bullish momentum. Crypto Market Might Be In The Final Stage Of The Bearish Phase Coutts, Chief Crypto Analyst at the financial knowledge and education platform RealVision, noted that the cryptocurrency market has gradually declined. The top 200 equal-weight index (EWI) shows that the leading 200 cryptocurrencies by market cap have experienced a 55% pullback over the past six months. Despite this downward trajectory, Coutts believes the risk/reward ratio is favorable for adding select digital assets at current levels. Related Reading: Ethereum ETFs Launch About To Kickstart The Altseason? Analysts Weigh In Coutts highlighted the steep surge in the alt season indicator, a data point that measures the degree by which altcoins outperform Bitcoin (BTC). However, this rise is not accompanied by a sustained Bitcoin rally, which requires its price to be above its all-time-high (ATH) value. As a result, the upward-moving altseason indicator may be short-lived. Still, Coutts suspects the market is “in the final throes of the bearish thrust.” The analyst emphasized that even when altcoins outperform BTC in terms of price, investing in them may not always be wise if they are still in a downward trend. Coutts recalled a similar situation in 2022, during the collapse of the FTX exchange. He suggests that the ideal time to invest in altcoins is when they are trending upward not only on the absolute price chart but also on the relative price chart. This Indicator Must Hit 45% For Bull Market To Resume According to Coutts, one key metric to determine whether the market has entered bullish territory is the percentage of digital assets above their 200-day moving average (MA). Currently, only 11% of digital assets are above the 200-day MA. For a bull market to resume, at least 45% of digital assets must be above this level. For the uninitiated, the 200-day MA is a technical analysis indicator that represents the average price of an asset over the past 200 trading days. Traders and analysts use it to identify the long-term trend of an asset, including digital assets like BTC. Related Reading: Altcoins Season: Analyst Predicts 2x Surge Post-Bitcoin Rally Despite the recent market downturn, certain fundamental metrics within the crypto ecosystem, such as daily active users (DAU), daily transactions, and network value-to-fee ratio, have increased in the past six months. Further, daily fees are down 84%, a decrease that can be attributed to the implementation of EIP-4844, which slashed transaction fees for Ethereum (ETH) ecosystem users. Coutts added that a bull market could be on the horizon when prices and fees begin to trend upward together. “We’re not there yet, but prices will lead, and fees will naturally follow,” he noted. As of press time, the total crypto market cap, excluding BTC, is $879.676 billion. Featured image from Unsplash, Charts from x.com and Tradingview.com
With only a few weeks before Q4 begins, investors and market watchers remain vigilant of the market’s performance. Many expect the next quarter will kickstart the rally’s second leg up, suggesting that most altcoins will explode in the coming months. Several analysts are bullish about the upcoming performances, hinting that the time to accumulate these cryptocurrencies is near its end and that the alt season is near. Related Reading: Crypto Investor Loses $16 Million Amid Friend.tech’s Controversy And Token Crash Investors’ Last Call Before The Altseason Bitcoin (BTC) and Ethereum (ETH) have taken a hit throughout Q3’s market retraces. Since July 1, the flagship cryptocurrency’s price fell more than 10%, while the “King of altcoins” plunged by over 30%. Nonetheless, several altcoins have led the market bounces amid the volatility, displaying a remarkable performance during the shakeouts. Many of the alts have outperformed their BTC pairs, as crypto analyst Michaël van de Poppe stated. Per the post, many technical indicators show that “the Bitcoin pairs of many of the altcoins have been crawling up.” The analyst also considers that BTC and alts have bottomed out and that a market’s next moves will “be great.” Moreover, altcoins’ dominance seems “ready to take the spotlight.” Analyst and trader Titan of Crypto recently noted that Bitcoin dominance “is on the verge of printing a new lower high.” To the analyst, this could trigger the Altseason between Q4 2024 and Q1 2025, which could last until mid-2025. Meanwhile, crypto analyst Alex Clay suggested that investors’ chance to accumulate alts might end soon as “Uptober” approaches. To the analyst, the second correction wave of the Elliot Impulse Wave is over. As a result, cryptocurrencies, excluding BTC and ETH, are ready to begin the third bullish wave. Clay highlighted that the second correction wave displayed a bullish flag pattern. Additionally, he noted that altcoins’ market capitalization has been supported “at the strong confluence of EMA 100 + MA 200 + Key zone.” Based on this, he forecasted the sector’s mid-term target could hit a market capitalization of $1.3 trillion by May 2025 before the fourth wave. Clay also predicted a “conservative” long-term target of a $1.65 trillion market cap for the final impulse wave. Will Altcoins Hit $2 Trillion? Miky Bull highlighted Altcoins’, including ETH, market cap impulse. To the trader, the cryptocurrencies’ market cap is getting ready to break from the bullish flash pattern, potentially targeting a mark above the $1.8 trillion level. Miky previously suggested that the alts chart follows “the 2020 blueprint.” However, he considers they will differentiate by the duration of the re-accumulation phase, as he deems this cycle’s expansion will be “longer and huge.” Related Reading: Analysts Say Bitcoin Will Break $90,000 In Q4 2024 But This Must Happen First Another crypto analyst, Moustache, noted that alts have been in a 2-year-long cup and handle pattern, which is considered extremely bullish. The pattern suggests that altcoins’ market cap will significantly increase from the handle lows. To the trader, if this scenario plays out, alts target a $2.14 trillion market cap by 2025. As of this writing, altcoins sit at a market cap of $558 billion, a 10% decrease since Q3 began. Featured Image from Unsplash.com, Chart from TradingView.com
As historically proven, the start of an altcoin season, or ‘altseason,’ a period marked by the strong performance of alternative cryptocurrencies relative to Bitcoin, often begins following a significant increase in BTC’s price. This phenomenon has been elaborated recently by Arthur Hayes, the co-founder of BitMEX and Chief Investment Officer at Maelstrom Fund, who has now shared the specific time when the alt season for this cycle could begin. Related Reading: Is Now the Time to Buy Bitcoin? Top Analysts Predict $150K Surge On The Horizon Bitcoin And Ethereum: Key Price Targets To Kickstart Altcoin Season In Hayes’ latest substack blog post “Water, Water, Every Where,” the BitMEX co-founder suggests that certain key price marks for Bitcoin and Ethereum hold the key to altcoins commencing their next major rally. Hayes emphasizes that for altcoins to embark on a bullish trend, Bitcoin and Ethereum must surpass significant psychological barriers. According to the BitMEX co-founder, Bitcoin must break above $70,000, and Ethereum must exceed $4,000 to set the stage for a broader altcoin rally. These levels are seen as crucial for restoring investor confidence and enabling a flow of capital into smaller-cap coins. Hayes particularly noted: Alt szn will return only after Bitcoin and Ether decidedly break through $70,000 and $4,000, respectively. Solana will also climb over $250, but the crypto market-wide wealth effect of a Solana pump is nowhere near as potent as with Bitcoin and Ether, given the relative market caps. The combination of a dollar liquidity-inspired Bitcoin and Ether rally into year-end will create a strong foundation for the return of a sexy shitcoin soiree. The Potential Catalysts In addition to his alt season start-off forecast, the BitMEX co-founder disclosed some potential catalysts that could play a major role in these upcoming market rallies. Hayes connected these imminent market movements to macroeconomic factors, specifically the issuance of US Treasury bills (T-bills). He argues that these could introduce new liquidity into the crypto markets, propelling Bitcoin towards the $100,000 mark within this cycle. This anticipated flow of funds is expected to benefit Bitcoin and have a significant positive impact on Ethereum and, by extension, the broader altcoin market. Related Reading: Ethereum Price Gains Strength, Outpaces Bitcoin With An 8% Surge Hayes also commented on the upcoming US election and the likely impact on the crypto market. Referring to it as “a coin toss,” the BitMEX co-founder said that with the election in early November and Yellen being at “peak manipulation in October, there will be no better time for liquidity this year.” He added: Therefore, I shall sell into strength. I will not liquidate my entire crypto portfolio but take profits in my more speculative momentum trades. At the end of the note, the BitMEX co-founder touched on the US debts and reiterated his $1 million prediction on Bitcoin, noting: Once the US debt ceiling charade is over, liquidity will gush from the Treasury and possibly the Fed to get markets back on track. Then, the bull market will begin for realz. $1 million Bitcoin is still my base case. Featured image created with DALL-E, Chart from TradingView
A quant has explained how a pattern currently forming in the Ethereum Open Interest could imply the altcoin season is coming “sooner than expected.” Altcoin Season May Be Approaching Soon Based On Ethereum Pattern In a CryptoQuant Quicktake post, an analyst has discussed about why an altcoin season may be coming soon for the cryptocurrency sector, based on a trend taking place in a couple of Ethereum and Bitcoin indicators. The first metric of relevance here is the “Open Interest,” which keeps track of the total amount of derivatives positions related to a given asset currently open on all centralized exchanges. Related Reading: Shiba Inu One Of The Most-Traded Tokens By Whales, Data Shows When the value of this metric goes up, it means the speculators are opening up fresh positions for the coin right now. On the other hand, a decline implies the users are either closing up their positions of their own volition or getting forcibly liquidated by their platform. Now, here is a chart that shows how the trend in the Open Interest has compared between Bitcoin and Ethereum over the past year: As displayed in the above graph, the Bitcoin Open Interest has been moving more or less sideways recently, while at the same time, the metric has registered growth for Ethereum. This would suggest that ETH has been seeing more appetite for derivatives market contracts than the original cryptocurrency recently. One of the driving factors behind this could be the news cycle related to the approval of the spot exchange-traded funds (ETFs) for the asset. In the same chart, the quant has also attached the data for another indicator: the Estimated Leverage Ratio (ELR). This metric measures the ratio between the Open Interest and the Exchange Reserve for any asset. The latter is naturally the total amount of the coin that’s currently sitting in the wallets of all centralized exchanges. The ELR basically provides us with information about the amount of leverage that the average user in the derivatives market is opting for right now. From the graph, it’s visible that this ratio has seen a surge for Ethereum recently but has been showing flat action for Bitcoin. Thus, it would appear that not only has ETH been seeing more speculative interest than BTC recently, but also these users opening contracts are going for higher risk as they are taking on more leverage. Related Reading: Analyst Says “Only A Matter Of Time” Before Bitcoin Flies Past ATH The analyst believes that the fact that Ethereum has overtaken Bitcoin in these indicators could be a potential sign that an altcoin season may be approaching soon. “If Ethereum’s price continues to consolidate in the current range, it’s very possible that the altcoin season will start sooner than expected,” notes the quant. It now remains to be seen how things play out in the market in the near future, given this shift of trend. ETH Price After seeing a slowdown earlier, Ethereum has been back on track in the past couple of days as its price has now climbed back above the $3,900 level. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
Mirroring the 2021 cycle, the profits from GameStop could spill into altcoins, catalyzing the start of the 2024 altcoin season. Could history repeat itself?
Analysts cite a classic trading pattern and growth in the altcoin total market capitalization index as proof of an upcoming altcoin season.
With the price of Ether nearing $3,000 after a month-long rally, crypto social media believes ‘altseason’ may already be here, though some analysts say otherwise.