As the crypto community stands on the brink of what could be a major season for the altcoin market, numerous indicators suggest that a significant market shift may soon be underway.
Notably, the focus within the crypto market is poised to transition from Bitcoin to its contenders—altcoins—which are speculated to offer higher returns in the coming months.
Anticipating the Altcoin Uptick In These Months
Prominent crypto analyst Michael van de Poppe has been vocal about this impending shift. According to Van de Poppe, the period from late June to October could be pivotal for altcoins.
This timeframe is expected to mark a significant rally, bringing altcoin values back in alignment with their “historical norms.” This anticipation is based on the current subdued movements and the foundational setups within the market that hint at a possible exponential rise.
The #Altcoins are ready for their upwards run.
I think we’ll be seeing a lot of momentum from late June until September – October.
A repricing back to their normal values after the big cascade of the first period of the year.
— Michaël van de Poppe (@CryptoMichNL) June 6, 2024
The underpinnings of the expected altcoin surge seem to be tied intricately to the movements of Bitcoin. Often seen as the bellwether for the broader crypto market, Bitcoin’s price fluctuations have a cascading effect on altcoins.
Analysts suggest that if Bitcoin experiences a dip, it could catalyze a shift in investor focus towards altcoins. The rationale is that investors will start hunting for higher returns, which altcoins are poised to provide during such a market phase.
Van de Poppe’s in-depth analysis indicates that this is more than mere speculation. Historical data and market dynamics suggest that altcoins gain momentum as Bitcoin consolidates or retracts.
This pattern is expected to trigger a “recursive demand shock” for altcoins, propelling their prices to new heights.
Market Indicators and Analyst Insights
Recent market activities provide concrete data to support this analysis. The altcoin market cap, which has gradually increased, surged from $1.108 trillion last week to a current valuation above $1.166, marking a resurgence in investor interest and market activity.
This is paralleled by insights from other market analysts who have observed critical technical patterns that suggest an impending alt season.
For instance, a notable crypto analyst, Moustache, highlighted a breakout from the Gaussian Channel on several altcoin charts—a technical indicator often associated with significant price movements.
According to Moustache, we witnessed substantial market rallies the last time Altcoins broke out of the Gaussian Channel. The current setup is very similar, and the market could be on the cusp of another major bull run.
Friendly reminder:
The last time Altcoins broke out of the Gaussian Channel and retested it was almost 4 years ago.
Back then we also saw a buy signal in the supertrend as well as the EMA 10, which withstood the entire run.
Altseason is very close imo.🎯 pic.twitter.com/ENxX3pk9hs
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) June 4, 2024
Furthermore, data from the analytics firm Santiment underscores this sentiment with specific examples. Altcoins like Shiba Inu and Cardano have seen a doubling in large-scale transactions, indicating a growing interest from whale investors.
This spike in large transactions is often a precursor to significant price movements, suggesting that substantial capital is entering the altcoin markets, poised to drive up prices.
Featured image created with DALL-E, Chart from TradingView