The season of Altcoin has been predicted as a mass trading pattern predicts explosive price movement
Bitcoin price has struggled to hold critical support at $64,800, a few days after completing its fourth half on April 20.
Meanwhile, altcoins, led by memecoins and Layer-1 cryptocurrencies, have outperformed Bitcoin (BTC) in the past week, leaving market participants wondering whether the altcoin season, or altseason, is here.
An altseason typically refers to a crypto market stage where altcoins often exceed BTC.
On April 24, trader and analyst Mustache noticed that TOTAL2 – the total market value of altcoins – has completed the Wyckoff method's ABC-correction steps and is in the middle of annihilation.
Crypto investors have been eagerly waiting for altcoins to rise because they offer higher risk-to-reward returns.
In an earlier X post on April 23, TOTAL2 escaped the falling wedge on the monthly chart, repeating the same setup seen in the 2020–2021 market cycle.
Also looking at TOTAL2, entrepreneur and crypto investor Lark Davies noted that the altcoin market price has returned to key support at the 50-day exponential moving average.
Related: Technical charts suggest roaring altseason ahead: analysts
Although this critical support was missing at the April 24 open on Wall Street, a large cross from the moving average converging divergence (MACD) indicator suggests that altcoins are poised to move higher.
Davis said:
“Something big could be on the verge of a bullish MACD crossover.”
However, now is not the time to celebrate. Following highs in mid-March, most altcoins have corrected. BTC remains down 12% above $73,800, the flash crash on April 24 threatened to take it below $65,000.
Analyst Daan CryptoTrades says sentiment about altcoins is “very low,” adding that “people are getting desperate to see altcoins.”
The performance of altcoins seems to coincide with the decline of Blockchain Center's altcoin season index, indicating that the altcoin season is not here yet. According to this index:
“If 75% of the top 50 coins have outperformed Bitcoin over the past season (90 days), then this is Altcoin season.”
This indicator shows that only 41% of the leading 50 altcoins have outperformed Bitcoin over the past 90 days. Since the index is less than 75, it indicates that this is not yet the altcoin season.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
