- Altcoins may dip one last time before entering a bullish phase, similar to the pre-2021 altseason pattern.
- The crypto market’s recent recovery shows promising signs, with projections suggesting a $3.39 trillion peak by 2024-2025.
- Bitcoin’s peak could signal trouble for altcoins—timing your investments is critical as altcoins follow Bitcoin’s lead.
Cryptocurrency markets are seeing a mid-cycle correction for altcoins, reminiscent of the January 2021 scenario before altseason took off. According to market analysis, altcoins could experience one final dip before entering bullish territory, a pattern that historically precedes an upward trend. This correction mirrors past patterns and raises questions about timing for traders and investors.
Altcoin Market Movements: Key Insights
The total market capitalization shows peaks and low points throughout the past several years. It peaked in 2018, then fell sharply into early 2019. A bottom was set when this downtrend broke by the middle of 2020. It increased once more by 2021, reaching record highs. However, the cryptocurrencies started to decline reaching their lowest point by the end of 2022.
The market consolidated since late 2022 with occasional sideways movements. This phase, highlighted in yellow allowed altcoins to stabilize. Following this consolidation, the market cap is now rising again, surpassing previous resistance levels. This indicates a potential upward move, with projections suggesting the market could hit $3.39 trillion by 2024-2025.
Bitcoin vs. Altcoin Performance: A Correlation Shift
With the exception of a noticeable lag in 2021, the link between the market capitalization of altcoins and that of Bitcoin tends to follow the latter’s changes. After Bitcoin’s peak, altcoins saw an 11-week consolidation before a rally ensued. Besides this isolated incident, altcoins usually align with Bitcoin’s trajectory.
However, holding altcoins past Bitcoin’s peak can be risky, as this often marks a vulnerable period. Bitcoin’s market cap grew exponentially from mid-2020 to early 2021, while altcoins lagged behind. Both metrics corrected sharply in mid-2021, with Bitcoin taking the lead once again by 2024.
Altseason Could Be Near
As the market approaches higher values, traders are closely monitoring altcoins’ performance for signs of an impending altseason. The past patterns suggest that a final dip could precede a major rally, potentially setting the stage for an explosive market shift. With Bitcoin leading the charge and altcoins following, the upcoming months could prove crucial for the market.
The post Altcoins Set for Final Dip Before Explosive Bull Run, Is Altseason Coming Soon? appeared first on Cryptonewsland.
Earn more CFN tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://cryptoforum.news0
CFN Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed