Analysts Foresee Altcoins ‘Explosive Rally’ Incoming, Is The Correction Phase Over?
May 06 2024 - 4:00PM
NEWSBTC
Over the weekend, the crypto market started recovering from the
largest retrace of this bull cycle. The strong correction caused
Bitcoin and the altcoins market to drop to levels not seen since
February. While some sectors of the crypto community felt like the
bull run was over or needed to “cool-off”, others seemed optimistic
about the cycle’s future. Now that the market is back from the
correction, analysts foresee that the altcoin season might come
soon. Related Reading: Here’s When Bitcoin Could Peak In This
Accelerated Bull Run: Analyst Is The Correction Phase Over? Over
the weekend, crypto analyst and trader MilkybullCrypto shared with
his X followers that the Altcoins market capitalization was at “an
RSI level that initiates an explosive rally.” Per his chart, this
level is a “reset for a healthy rally,” as seen in 2016 and 2020.
During these two cycles, when the altcoins reached this level, a
“huge rally” followed. The analyst shared his latest forecast on
Monday after seeing the market strengthen its recovery. To
Milkybull, the altcoins market cap finished a “Heatly retest.” The
market displayed a similar correction during the 2020-2021 rally
before skyrocketing to all-time high (ATH) levels. The chart seems
to display the same performance, which could mean that altcoins are
“in preparation for an explosive rally,” if history repeats itself.
Altcoins resembling performance between cycles. Source:
MilkybullCrypto Similarly, crypto trader and analyst Captain Fabik
considers the “Healthy Correction is done.” In his X post, the
analyst identified a bullish falling wedge pattern, which signals a
“bullish rally incoming.” Altcoins “Cool-Off” Or “Euphoria”
Incoming? According to analyst and trader Rekt Capital, the Altcoin
market cap, excluding the top 10 cryptocurrencies, has
“successfully retested the $250 billion level as a support level”
over the last several weeks. Per the trader, the altcoins are
following the proposed path of his “Ultimate Altcoin Market Cap
Game Plan For The Coming Months.” On this plan, Rekt Capital
forecasted altcoins market cap would surge to the $315 billion
level before retracing back to the $250 billion mark. This retrace
would be followed by an explosive surge above the $440 billion
market capitalization. Altcoins have stayed above the $250 billion
support zone despite the strong corrections, as seen in the chart
below. To the analyst, this suggests the market is “now showing
initial signs of trying to curl up from here.” Ultimate Altcoin
Market Cap Game Plan For The Coming Months. Source: Rekt Capital
Renowned figures have expressed their “disappointment” in altcoins’
performance this cycle. Altcoin Sherpa considers that “many alts
didn’t even run that hard over the last few months,” which could
suggest that it’s time for a “cool-off.” At the time, the analyst
deemed altcoins’ rally was “done” for the next 1-4 months. However,
others believe the “euphoria phase” for altcoins is coming.
According to Crypto Yhodda, “The alts will rise again, and by the
end of 2024, they will go crazy.” Moreover, the analyst believes
that “Altcoins Cycle III” will give us some crazy pumps. According
to his chart, the altcoins’ cycle I and II displayed a symmetrical
triangle pattern before the breakout. The surge was followed by a
slowdown before the upward trajectory continued, called “Round 1”
by the analyst. Subsequently, the rally would repeat the pattern on
a second round before reaching the cycle’s top. “Cycle III” appears
to be in the middle of Round 1, which suggests to the analyst there
is a long road ahead before it “hits the euphoria phase.” Related
Reading: Crypto Analyst Reveals 6 Must-Buy Altcoins With The Most
Potential Altcoins market capitalization sits at $1.045 trillion in
the weekly-chart. Source: TOTAL 2 on TradingView Featured Image
from Unsplash.com, Chart from TradingView.com
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