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Following a dramatic weekend, global equities and crypto down as markets digest political risk, but analysts are suggesting there could be an Altcoin season and bull run just around the corner.
Webster’s dictionary defines ‘Altcoin Season’ as a period of a few months when every coin but yours pumps. Joke aside, despite Bitcoin’s dramatic price fluctuations, the altcoin market cap has been unwavering, consistently finding support at the $315 billion mark.
This resilience hints at underlying strength and potential for growth in the altcoin market in a potential 2024/5 bull run environment.
Despite altcoins establishing a clear bottom, they are still bleeding against Bitcoin. Indicators like Bitcoin dominance (for beginners: high BTC dominance means there’s less confidence in alts’ performance) offer clues to the timing of alt season. Currently, Bitcoin’s dominance remains high, but stagnation in its chart suggests a possible reversal, paving the way for altcoins to shine.
Analysts like Rekt Fencer are eyeing altcoins with small capitalizations for their explosive return potential. However, Rekt Fencer also suggests that investments in the top 100 cryptocurrencies by market cap could yield 2x-10x profits as altseason kicks off.
This is When Altcoin Season Starts (Mark Calendars)
The essence of altseason lies in its cyclical nature, where profits harvested from altcoins are funneled back into Bitcoin, creating a feedback loop that sustains the bull run.
Historical cycles in 2017 and 2021 exemplify this pattern, showcasing significant price leaps across major cryptocurrencies. However, some analysts, like Peter Brandt, think Bitcoin’s dominance is so high this cycle that altcoins might not receive a typical massive pump.
Bitcoin had a staggering 90% dominance in 2016, showing how weak the altcoin market was. Today, Bitcoin’s dominance sits around 52% because the value of altcoins like Ethereum and Solana, which act as global computers, is obvious.
Moreover, when we look at market cycles (2013, 2017, 2021), they all do the same thing: Altcoins stagnate (as they are now), then pump massively for a few months, and when we reach a bubble, they pop, and Bitcoin regains dominance.
According to analysts at Crypto Crew University, there are three phases to altcoin season:
- Phase 1: FUD (fear, uncertainty, doubt) has a hold on the market and people are skeptical that altcoins can pump against Bitcoin
- Phase 2: Denial of a bull run still exists and Bitcoin dominance remains high
- Phase 3: Here markets flirt with previous highs (as we are now), a clear signal that altcoins are on the cusp of another monumental shift. Historical patterns from 2013, 2017, and 2021 illustrate this phase’s pivotal role in setting the stage for all season, as it teases and barely touches all-time highs before the next leap.
Voices across the crypto analysis sphere align in anticipation of an altcoin bull run in May.
From Crypto Nova’s observations of Bitcoin dominance to Kevin Svenson’s bold declaration of a massive bull run poised for altcoins, the sentiment is clear: altseason is around the corner, especially following Bitcoin’s halving.
Further proof we are in Phase 2 is that most high-cap altcoins like XRP, DOGE, ADA, AVAX, BCH, DOT, and LINK remain significantly below their peak prices, contrasting with Bitcoin’s relative stability.
The Bottom Line: Altcoin Season is (Almost) Here
As we wait for altcoin season, the playbook’s clear: Watch the markets like a hawk, and don’t forget—if you believe in the long-term value of a project, price fluctuations shouldn’t matter.
With the seismic shift that is the Bitcoin halving one week away, now’s your chance to ride the tsunami of crypto glory. But beware, with altcoin season comes casualties like FTX and Luna. Do your own research, and stay vigilant.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
