Bitcoin’s (BTC) recent surge to a record $71,000, followed by a pullback, has set the stage for what many in the cryptocurrency sector believe could signal the onset of an altcoin season.
The coming two weeks are set to be pivotal for the entire altcoin industry. The United States House of Representatives is preparing to vote on the Financial Innovation and Technology for the 21st Century Act (FIT21).
Additionally, the United States Securities and Exchange Commission (SEC) is set to vote on spot Ethereum exchange-traded fund (ETF) later this week. Speculation about the likely approval of both the FIT21 bill and the spot Ethereum ETFs has been rife, driving increased activity in the crypto markets.
Picks for you
At press time, the global cryptocurrency market cap stands at $2.73 trillion, a 0.45% decrease in the last 24 hours.
Market movements and trends
The cryptocurrency market began the week with strong bullish momentum, led by Ethereum’s (ETH) recent surge to $3,800, which in turn has driven notable gains across major altcoins.
Historically, Bitcoin initiates market cycles with a robust surge, but significant action typically unfolds during its consolidation phases, where other cryptocurrencies take the lead.
This trend is expected to become more pronounced in the upcoming period, driven by varying forecasts from leading analysts
Analysts’ insights
Prominent crypto analyst Michaël van de Poppe observed that the altcoin market cap, referred to as TOTAL2, has completed its recent correction.
Poppe suggested that the altcoin market cap is well-positioned for a rally to retest its all-time high (ATH). Additionally, most altcoins, led by Ethereum, have broken out of a bullish flag pattern in recent days.
Another well-known analyst, Rekt Capital, noted in a post on X (formerly Twitter) that the altcoin market cap, excluding the top 10 cryptocurrencies, has successfully retested the $250 billion level as a support level over recent weeks.
According to his analysis, the altcoin market cap is expected to surge to $315 billion before retracing back to the $250 billion mark. This retracement is projected to be followed by an explosive surge above the $440 billion market capitalization.
Investor sentiment
Prominent analyst advise investors not to panic and to prepare for the upcoming “maniac phase.” Prominent crypto analyst Crypto Yoddha shared that the recent dip was ‘just a higher low in an uptrend.’
According to his analysis, the altcoin market is looking to retest the $1.27 trillion resistance level seen in March before aiming for the previous cycle’s $1.7 trillion all-time high. He anticipates a bullish continuation leading to a new market all-time high during the next phase.
Contrasting Signals
Despite these optimistic projections, the altcoin season index by Blockchain Center presents a contrasting view.
According to this index:
“If 75% of the top 50 coins performed better than Bitcoin over the last season (90 days), it is Altcoin Season.”
Currently, only 37% of the leading 50 altcoins have outperformed Bitcoin in the past 90 days, still insufficient to officially declare an altcoin season.
The cryptocurrency market stands at a critical juncture, with significant legislative decisions and market movements on the horizon.
While many analysts are optimistic about the potential onset of a new altcoin season, contrasting indicators suggest investors should proceed with caution.
The coming weeks will be crucial in determining the direction of the altcoin market, potentially leading to a ‘maniac phase’ or continued consolidation.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
