Bitcoin and Altcoins Poised for Major Gains: Q4 Expected to Deliver Best Returns

Many are questioning whether the recent crypto cycle has peaked, and if they should sell off their assets in anticipation of buying back at lower prices, or if the recent downturns present buying opportunities.

According to the analyst Satoshi Stacker, one of the most important macroeconomic factors influencing both the crypto and traditional markets is the anticipated rate cuts by the Federal Reserve (FED). While Fed Chair Jerome Powell and other officials have stated that their decisions depend on upcoming data, they have made several optimistic comments following May and June data indicating a return of disinflation.

The analyst points out a major bullish catalyst that hasn’t received much attention: FTX creditors are expected to receive around $16 billion in cash payouts later this year. It’s predicted that a significant portion of these funds will be reinvested in crypto, potentially driving up market prices. Even a fraction of these payouts reentering the market could result in billions of dollars in buying pressure, particularly in altcoins, which require less capital to move their prices significantly.

He said that historical data also suggests a seasonal pattern, with Q4 typically delivering the best returns for Bitcoin. This year’s U.S. election adds another layer of seasonality, as traditional markets tend to experience a pullback before the election due to uncertainty, followed by a substantial post-election rally.

Peek Into Bitcoin Price Action

According to analyst Josh of Crypto World, Bitcoin is currently experiencing a bullish divergence, with its price facing resistance.  Despite some short-term fluctuations, Bitcoin’s overall bullish trend remains intact, and the 4-day candle close is crucial for confirming any trend reversals. Historical trends suggest waiting for confirmation signals before concluding the end of a bull market. 

The bullish divergence on the daily chart suggests a temporary relief from the bearish trend, but not necessarily a complete reversal. Key support levels are at $56-57K and $51-53K, while resistance lies between $60K and $74K. Recent market activity saw Bitcoin slightly moving up to liquidate positions, with liquidity levels just below $57K and around $60K.

Also Read: These Ethereum-based Altcoins To Dominate The Bull Market?