The prevailing consensus among analysts is bullish, anticipating a massive altseason in sight.
An impending altseason is anticipated by analysts, who note that it may be the “biggest bull run for altcoins since 2017” due to bullish historical, technical, and fundamental factors.
In a September 23rd X post, pseudonymous analyst Moustache observed that TOTAL2, the altcoins’ total market cap excluding Bitcoin, was in the process of breaking out of a descending broadening wedge that has been in play for the past six months.
According to Moustache, the positive outlook for cryptocurrencies is reinforced by the RSI’s breakout from its downward trend, which was fueled by recent buying pressure. This indicates that the moving average convergence divergence indicator (MACD) is about to cross bullishly.
He went on to say that this configuration might result in “a god candle like we have not seen in years,” which would indicate a notable upswing in the altcoin market’s price.
#Altcoins
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) September 23, 2024
I think we will see the biggest bull run for Altcoins since 2017.
All our targets are too low imo.
Charts and on-chain analysis pointing to this will follow this week.
With this recent buying pressure, Bitcoin’s dominance has lapsed to 57.48%, down 0.71% over the past week, according to TradingView data.
Analysts have interpreted this sharp decline as a sign that Bitcoin’s dominance is peaking. Investors appear to be selling BTC and rotating their capital into alternative coins, indicating that “altcoins are likely the focus for now.”
The Perfect Storm: Fundamental Catalysts Favour an Altseason
While technical indicators suggest an impending breakout, it is the fundamental catalysts that will sustain a more prolonged altseason. Pseudonymous analyst Tracer outlined this perspective in a September 23rd X thread, highlighting several key factors.
Most notably, as borrowing becomes less expensive, investors are becoming more adventurous and are investing in more speculative assets like cryptocurrencies as a result of the Federal Reserve’s decision to slash interest rates by 50 basis points.
Tracer also mentioned the $16 billion that FTX creditors are expected to release between December 2024 and March 2025, which is expected to infuse additional capital into the market.
This view is supported by recent reports from 10x Research, which project that between $5 billion and $8 billion may reenter the cryptocurrency market, accelerating the rise of Bitcoin and other altcoins.
The upcoming US election has emerged as a major catalyst for optimism in the cryptocurrency market, which has been greatly bolstered by political developments.
Vice President Kamala Harris’s first public endorsement of digital assets has heightened this bullish outlook. In her recent comments, she affirmed a commitment to supporting crypto and AI to foster innovation.
This endorsement, along with Donald Trump’s open support for cryptocurrency, highlights a growing bipartisan backing that is expected to drive significant momentum in the cryptocurrency space as the push for regulatory clarity intensifies. Tracer summarised:
Everything points to an imminent rise and altseason.
Altcoin Season Isn’t Here Yet, According to Metrics
With the increasing optimism surrounding altseason, analysts such as Tracer predict that the season could begin in as little as nine days.
However, it’s not yet time to celebrate, as the altcoin season index by Blockchain Center indicates that “it is not altcoin season.”
This index indicates that in order to qualify for a technical altseason, 75% of the top 50 coins must outperform Bitcoin during the previous season (90 days).
Just 33% of the top 50 altcoins have outperformed as of right now, according to the index, which represents a slight regression from the sharp increase to 46% last week.
Therefore, as the market waits for a more significant shift in altcoin performance, caution is still advised even though optimism is high and catalysts are aligning.
As this crucial moment draws near, we continue to be in an accumulation zone, which offers investors a great chance to solidify their positions in the most promising altcoins ahead of altseason.