Bitcoin price has been moving sideways for a while, but this period of low volatility is making altcoin investors smile. Many cryptocurrencies have reached new annual peaks. The double-digit increase gained momentum over the weekend and continues to rise today. Could it really be the start of the altcoin bull season? What do the 3 key signals indicate?
When Will the Altcoin Bull Season Begin?
Investors, who have suffered serious losses for over 1.5 years and have only witnessed 167 major events this year, now believe their time has come. We discussed on Saturday which 167 events affected the crypto markets this year and how it was not easy to overcome these major events and reach the end of the year.
From the peak of $1.71 trillion in November 2021, the total value of altcoins dropped to $427 billion by June 2022. Then, from mid-2022 to November 2023, altcoins went through a long-term accumulation phase. During this period, the tough resistance level was $657 billion, and until November, the bulls could not surpass this resistance.
The first major signal is right here. The breakout in November was confirmed, and the chart has formed a long-term upward structure. The chart, making higher lows and highs, consistently indicates an upward direction. Accordingly, the altcoin bull season has been underway for about a month, and the question is when it will end.
Should You Buy Altcoins?
It’s true that we are going through a period similar to the altcoin bull season, and if this continues, the TOTAL2 (cumulative value of altcoins) could rise up to $942 billion. Another signal confirming that we are in the midst of an altcoin bull season or its eve is the fractal structure of the TOTAL2 chart published by @el_crypto_prof. This pattern had triggered major rallies twice before, in 2016 and 2020.
Another sign exciting investors comes from the Altcoin Season Index. This index tracks the performance of altcoins against Bitcoin over three intervals: monthly, quarterly, and annually. And it is the second one that indicates an upcoming trend change. If the movement experienced here in 2020 repeats, 2024 could be a period of strong altcoin rallies.
Here’s an additional bonus signal. The long-term downward movement in the ETH/BTC chart now appears to be nearing its end. If the double bottom scenario materializes and ETH bounces from the 0.052 BTC level, it could quickly run to the nearest resistance at 0.085 BTC. This could mean that altcoins are on the verge of a new rally wave.
