- Many analysts think the crypto market is on the verge of an altcoin season.
- Historical patterns suggest the altcoin market could be at a critical point.
- The analyst projects the altcoin market cap to surpass $5 trillion in the upcoming rally.
Analysts believe the crypto market is gearing up for an altcoin season. One such analyst posted on X using the altcoin market cap data to reveal historical patterns, suggesting the market could be at a critical point.
The shared info highlighted past altcoin market cap trends, breaking down price movements into segments, each representing a specific season within the market cycle. The analyst used a chart to illustrate that the altcoin market’s bull run happens in four seasons: Accumulation, First Leg Up, Chop, and Up Only.
Meanwhile, the Bitcoin halving event separates the cycle into two, with the Accumulation and First Leg Up occurring before Bitcoin halving, while the Chop and the Up Only follow afterward to complete the cycle. Shared data showed that the altcoin market cap is nearing the end of the Chop in the current cycle.
Interestingly, the analyst’s presentation shows that the altcoin market cap is close to a horizontal breakout, which would kick off the Up Only season. However, it is crucial to note how other technical metrics support the dominant bullish prediction of the altcoin market.
TradingView’s data reveals how the altcoin market cap bounced back from a big drop and formed a bullish candle in the first week of August. The metric has continued upward, climbing above crucial resistance and prompting more bullish sentiment among investors.
The altcoin market cap was $934.7 billion at the time of writing, according to data from TradingView. At that value, the metric rested on top of a 0.382 Fibonacci support on the weekly chart, leaving room for higher movement in the future.
Data shared by the analyst suggests the altcoin market cap would surge significantly and surpass $5 trillion. That would be over five times its current value and could push many altcoins to new all-time highs.
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