Could the Next Altcoin Season be Just Around the Corner? Some Traders Think So
By Thomas Musgrave
Updated: April 29, 2024 17:26 EDT
|
Reading Time: 1 min
As Bitcoin enters a period of consolidation, traders are growing more optimistic about the possibility of a new altcoin season.
The recent price movement has sparked discussions and speculation among traders about the potential for an upcoming altcoin season.
Is Bitcoin’s Price Recovery Enough to Ignite the Next Altseason?
Leading up to the weekly close on April 28, Bitcoin surged past $64,000, and data suggests that Bitcoin’s price is strengthening over the weekend.
At the time of writing, Bitcoin is hovering around $62,600, while the total market capitalization of altcoins has seen a modest 1% increase, indicating a potential positive trend for these alternative cryptocurrencies.
Trader and commentator Moustache
predicted a full-fledged altcoin season that could rival anything seen since the all-time highs in 2017.
In response to the altcoin activity, p
opular trader Skew, noted on X
(formerly Twitter) that “Alts bounced nicely, but it is crucial to break the pattern of setting weekly highs on Mondays and Tuesdays.”
Skew suggested that sell-side pressure could hinder Bitcoin’s progress towards its recent highs.
The trader also suggested that Tether is attempting to regain its position after breaking below a rising trendline earlier this year. The recent dip was merely a backtest.
According to Skew, there is an inverse relationship between the value of USDT (Tether) and the value of altcoins.
Could Ethereum Play a Role in the Next Altcoin Season?
The price of Ethereum
has experienced a significant drop in the past six months due to skyrocketing gas fees.
ETH alone has dropped 10.46% this month from its April 9 high of $3,722.
In the past week, Ether has seen a slight increase of 4.3% in the market, but it is still not enough for a complete recovery.
Analysts from crypto analytics platform Santiment have suggested that the decrease in Ethereum gas fees
might indicate an upcoming altcoin season.
According to a post by Santiment on X, Ethereum’s average transaction fee has dropped as low as $1.12.
Santiment predicts a faster turnaround for Ethereum and associated altcoins than expected, thanks to the recent retracement and reduced demand on the network.
Follow Us on Google News