Is Altcoin Season Approaching?
Many traders and investors have been wondering when altcoin season will arrive after enduring a tough couple of years. First, the 2022 bear market caused their favorite cryptocurrencies to plummet. Then, they watched as Bitcoin (BTC) skyrocketed by 180% in 2023 while Ethereum (ETH), the largest altcoin, hit an 18-month low against Bitcoin.
However, there are several signals indicating that altcoin season may be on the horizon. These signals involve the altcoin market capitalization index (TOTAL2), the altcoin index, and the price action of ETH itself.
Altcoin Market Capitalization Ready to Break Out
The TOTAL2 chart shows that altcoins have been in a long-term accumulation phase since mid-2022. The recent breakout above the key resistance level of $657 billion suggests the beginning of a long-term uptrend. Additionally, altcoin trading volume has broken out above a descending resistance line, which is a bullish signal.
The next target for TOTAL2 is $942 billion, with $657 billion expected to provide support during any corrections.
Altcoin Season Index Ends Year of Bitcoin
The Altcoin Season Index indicates that altcoins may be ready to leave the Bitcoin zone. This indicator is repeating the fractal structure seen in 2020, suggesting a potential strong altcoin season in 2024.
Ethereum on the Verge of a Strong Uptrend
Despite its current low against Bitcoin, Ethereum’s price chart indicates a possible uptrend. If ETH bounces off the 0.052 BTC level, it could surge to the nearest resistance at 0.085 BTC. Alternatively, if Ethereum collapses, the next support level is at 0.04 BTC.
When paired with USDT, Ethereum is forming a bullish structure similar to the previous bull market. Holding the $1935 level as support could initiate an exponential upward movement, potentially leading to a surge over the next 18 months.
Hot Take: Altcoin Season May Be Imminent
The signs are pointing towards an upcoming altcoin season. The altcoin market capitalization is ready to break out, the Altcoin Season Index suggests a trend change, and Ethereum’s price chart indicates a potential strong uptrend. If history repeats itself, altcoins could experience a significant surge in the near future.
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