As the new year approaches, some analysts have predicted a “very optimistic” 2025 for Altcoins. The sector is expected to break out soon and start the long-awaited “alt season” after retesting a key support level.
Altcoins retest key support level
Amid recent market performance, many Altcoins have struggled to post significant gains. However, several market observers predicted that the altcoin’s launch will occur in January 2025.
Driven by post-US election momentum, the total crypto market capitalization, excluding bitcoin and Ethereum, broke out into a three-year downtrend in mid-November, surpassing its yearly high of $788 billion. During this month’s rally, the sector rose to $1.1 trillion, its highest market capitalization since 2021.
Altcoins have since struggled over the past two weeks, falling nearly 26% as Bitcoin missed the $100,000 mark, but remain above a key level despite recent performance.
Crypto Jelle noted that the sector exploded and reevaluated its “main trend line while destroying all leverage in the process.” The analyst noted that funding has “completely restarted,” sentiment has been at an all-time low and the chart looks promising, adding that he is “very optimistic for 2025.”
He also noted that Altcoins’ price action is “very similar” to Bitcoin’s first major action. obstacle of 2021. According to the chart, the flagship cryptocurrency had a “strong rally, pullback, lower high, and drop below the first low” before reaching new highs.
Based on this performance, the Altcoins pullback is apparently over, “they should start pulling back soon if this stays the same.” Similarly, Michaël van de Poppe fixed“The correction is almost over and the time to go up is only on the horizon for Altcoins and Bitcoin. Looking forward to a lot to come.”
Will Altseason follow the 2021 playbook?
Cryptocurrency titan stated that altcoins will explode soon, suggesting that “the grand finale is just around the corner.” According to the analyst chart, Altcoins have been in a two-year cup and handle pattern, breaking the upper line of the pattern during recent market highs.
According to the pattern, Altcoins, excluding ETH, could see a 200% rise to a market capitalization of $1.4 trillion, surpassing the 2021 high of $1.13 trillion. The analyst also noted that, ahead of its 2021 rebound, the sector had a similar performance.
In 2020, Altcoins broke out in November and saw a significant 30% drop in early Decemberfollowed by a four-week recovery. They then posted a 143% rise in January 2021, leading to another quarterly green candles before the first major pullback.
Similarly, they experienced a 26% drop in December and are currently in the third week of the expected four-week recovery period. For the analyst, “early January could mark the beginning of an ‘only up’ season.”
Finally, the cryptocurrency titan aggregate that, during the last two cycles, the initial Altcoins rally lasted between 140 and 175 days, suggesting that this cycle’s rally could reach a new high around April or May. If you were to follow the performance of previous cycles, you could see a first pump around the second quarter of 2025 before peaking in the fourth quarter.
Fountain: NewsBTC.com
