Crypto analyst Rekt Capital recently suggested that Bitcoin is on the verge of making a significant move post-halving. According to Rekt Capital, there is only one last Pre-Halving retrace left for Bitcoin before it embarks on a parabolic journey. This impending move by Bitcoin could be a signal for the beginning of the altcoin season, where other cryptocurrencies start to outperform Bitcoin.
With Bitcoin potentially facing a correction in the near future, altcoins are in a prime position to make a strong push upwards. Ethereum, the second-largest cryptocurrency by market cap, recently broke the $3,000 mark for the first time in nearly two years. This milestone for Ethereum sets the stage for other altcoins to follow suit and potentially lead the market into a new era of growth.
Several crypto analysts have highlighted key indicators signaling the imminent altcoin season. Analyst Crypto Prof pointed out that the Gaussian channel on the Altcoins chart has turned green for the first time in almost four years. This shift in color, along with altcoins breaking through previous resistance levels, mirrors patterns seen before previous Altcoin bull runs in 2016 and 2020.
On-chain intelligence platform Glassnode has reported a growing appetite among investors to allocate capital towards altcoins, indicating a willingness to take on more risk for potentially higher returns. The Altcoin season momentum indicator has been showing positive signals since October 2023, with a recent retriggering on February 4th following a slight cooldown after the Spot Bitcoin ETF approval.
Glassnode’s analysis also highlighted a shift in capital from Bitcoin into other ecosystems like Ethereum, Solana, Polkadot, and Cosmos. Stockmonkey Lizards, another crypto analyst, predicted a significant increase in the altcoin market cap, potentially reaching $10 trillion from the current $900 billion market cap. The market is progressively gearing towards an altcoin season, with the altcoin season index currently at 61% and aiming for a rise to 75% for full swing.
The signs pointing towards an imminent altcoin season are becoming more evident as key indicators and market dynamics align. With Bitcoin preparing for a major move and altcoins showing signs of strength and growth, investors should closely monitor the market for potential opportunities. However, as with any investment, it is crucial to conduct thorough research and exercise caution when navigating the volatile cryptocurrency market.
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