The whispers of an upcoming altcoin season are resonating throughout the cryptocurrency community as key digital assets exhibit a noteworthy rebound. Recent discussions in trading forums have drawn parallels between the current state of altcoins and the dynamic phase observed in early 2019—a time synonymous with considerable market transformation. Traders are now keeping a vigilant eye on potential price actions that may lead to a significant shift in sentiment.
Comparison of Present Altcoin Market to Early 2019
Renowned crypto strategist Alex Johnson pointed out in a recent tweet that the atmosphere surrounding today’s market mirrors that of January 2019. During that time, pessimism was rampant, with Bitcoin lingering around $3,000 and Ethereum barely above $100. Many believed the cryptographic bubble had burst. Yet, Johnson boldly invested in these assets, confident in their eventual resurgence.
As the market began to recover from a prolonged bear trend in 2019, Johnson noted that April brought noticeable positive shifts, culminating in some of the most remarkable bullish trends we have seen. This period laid the groundwork for the significant long-term gains that would follow.
According to research from Crypto Insights 2019 report, Bitcoin’s value soared beyond $13,000 by mid-year, closing the year with a remarkable increase of 95%. This increase not only propelled Bitcoin but encouraged a broader market rally, ushering investors into a diverse range of altcoins, breaking away from Bitcoin dominance.
In that startling year, prominent altcoins saw dramatic surges with the likes of Ethereum, Litecoin, and Bitcoin Cash all exceeding gains of 40%. Meanwhile, some significant players, like XRP, struggled, ending the year at lower levels than anticipated despite earlier momentum. Overall, the capital in the cryptocurrency market expanded by over 44% in 2019, peaking at around $350 billion, feeding an enthusiastic resurgence among investors who had previously remained on the periphery during the downturn.
Analysts Anticipate Breakouts in the Altcoin Market
Notably, crypto analyst @marketwatcher shared insights via social media, displaying a chart that captures the total altcoin market capitalization, excluding the top ten assets. He elaborated that a Falling Wedge formation has developed, indicating a potential shift in upward momentum. This technical pattern has been forming for several weeks and often results in price movements once the asset exceeds the wedge boundaries outlined in the chart.
The analysis highlighted a pronounced retracement following the price reaching the pivotal $221.87 billion resistance mark. @marketwatcher emphasized that breaking decisively above this threshold could inject an additional $50-$60 billion into the market, propelling it towards an upward trend line.
Related Reading: Altcoin Season Index Experiences Bearish Sentiment Amid Bitcoin Struggles
This positive outlook is backed by robust momentum, with increased Relative Strength Index (RSI) indicators breaking out of previous downtrends. Analysts suggest this uptick could herald the beginning of a broader altcoin surge, potentially impacting assets such as VeChain (VET), SUI, Internet Computer (ICP), and more.
