Is the Next Altcoin Season Just Around the Corner? Some Traders Think So
By Thomas Musgrave
Updated on April 29, 2024, at 17:26 EDT
As Bitcoin shows signs of consolidation, traders are getting excited about the possibility of a new altcoin season.
The recent movement in prices has sparked discussions and speculation among traders about the potential for an upcoming altcoin season.
Is Bitcoin’s price recovery enough to fuel the next altcoin season?
Before the weekly close on April 28, Bitcoin surpassed $64,000, and data suggests that Bitcoin’s price has been 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 small 1% increase, indicating a possible positive trend for these alternative cryptocurrencies.
Trader and commentator Moustache predicted a full-fledged altcoin season that could rival anything since the all-time highs in 2017.
In response to the activity in altcoins, popular trader Skew noted on X (formerly Twitter) that “Alts bounced nicely, but breaking the pattern of setting weekly highs on Mondays and Tuesdays remains crucial.”
Skew suggested that there may be sell-side pressure hindering Bitcoin’s progress towards its near-range highs.
The trader also suggested that Tether is trying to reclaim its position after breaking below a rising trendline earlier this year, and that the recent dip was just a backtest.
According to Skew, there is an inverse relationship between the value of USDT (Tether) and the value of altcoins.
Could Ethereum Contribute to the Next Altcoin Season?
Over the past six months, Ethereum has experienced a significant drop in price due to skyrocketing gas fees.
ETH has dropped 10.46% this month alone from its high of $3,722 on April 9.
In the past week, Ether has seen a slight increase of 4.3% in the market, but it is still not enough for a full recovery.
Analysts from crypto analytics platform Santiment suggested that the decrease in Ethereum gas fees could potentially signal the start of an altcoin season.
According to a post by Santiment, 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.
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