The cryptocurrency market is bouncing back, and many analysts are excited about the possibility of an “altcoin season” right around the corner. Crypto analyst Moustache points out that altcoins are ready for a big movement. This comes after a recent recovery in the Relative Strength Index (RSI), which has shown positive trends in the past. As Bitcoin’s dominance begins to fade, alternative cryptocurrencies are getting ready to take the spotlight.
What should you expect in the days ahead?
In previous altcoin cycles, a reclaimed RSI has served as a clear signal that substantial upward momentum was developing. This indicator has demonstrated promising signs in the past, particularly during the 2014 to 2018 period when the total altcoin market cap surged from approximately $56 million to an impressive $10 billion by early 2017.
The explosive growth witnessed during that era was not a coincidence; it marked a shift in market dynamics, resulting in a significant influx of capital into altcoins. Currently, with the total market cap hovering around $927.36 billion, we are observing a similar RSI pattern reemerging, suggesting that altcoins may be on the verge of another breakout.
Analysts believe that a breakout above the current pattern could trigger a flood of liquidity into the altcoin market. This potential influx of funds could speed up price movements, leading to a bullish trend for many altcoins.
While Bitcoin stays around $63,000, its dominance over the crypto market is weakening. Recent price changes are fueling speculation about an upcoming altcoin season, especially since 33 altcoins have done better than Bitcoin. However, for the altcoin season to truly start, at least 50 altcoins need to outperform BTC.
Ethereum, the second-largest cryptocurrency, is bouncing back after hitting 40-month lows against Bitcoin. In the past week, ETH has jumped about 15%, which is better than Bitcoin’s 8% gain.
Other Altcoins on the Rise
Several other altcoins are also showing impressive performance, with NEAR, FET, SUI, APT, and TAO posting gains between 25% and 82% in just one week. If history is any indication, the altcoin market could be poised for substantial gains in the coming months.
Will altcoins finally have their moment in the sun?
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