Striking Claims from Experts: Altcoin Season is Here!
Historical Bitcoin price indicators suggest that the buy signal seen before Bitcoin’s sixfold price increase in the past presents a substantial opportunity for cryptocurrency investors.
Luke Martin, a well-known cryptocurrency investor, views the current period as a crucial accumulation phase for altcoins. He notes that one of the lowest buy signals in the last three years has emerged, indicating a potential bullish market ahead.
In an X (formerly Twitter) post dated 28 August, Martin emphasized an ‘altcoin buy signal’ chart highlighting buy signals for the overall altcoin market, derived from historical cryptocurrency data.
According to Martin, when Bitcoin was at a similar level in the summer of 2020, its price saw a sixfold ‘vertical move,’ rising from $10,000 to $60,000 in the second half of the year, indicating a potential price surge.
This historical precedent implies that altcoins may currently be at a ‘sell your house to buy more’ level, suggesting that they are undervalued. Investors might capitalize on this opportunity before a potential altcoin market rally.
Is The Season Truly Upon Us?
While the start of the season seems uncertain given the current unfavorable cryptocurrency market conditions, other technical indicators point to the potential for a rally in altcoins.
On the same day, cryptocurrency investor Mags highlighted the falling wedge formation on the altcoin market capitalization chart. This pattern is often considered a bullish continuation pattern, suggesting a possible altcoin price breakout.
According to technical analysis, the falling wedge pattern is generally a sign of a bullish breakout. Therefore, this suggests that the altcoin market may be preparing for a significant rise.
Michael van de Poppe, founder of MN Consultancy, emphasized the potential for altcoin market growth. In addition, he noted that the market is currently 47% below previous peaks, which indicates significant room for growth.
When Will Altcoin Season Start?
The start of altcoin season in the cryptocurrency world remains a frequently discussed issue under current crypto market conditions.
The Fear and Greed Index, which is provided by the financial analytics platform Alternative.me, currently indicates a period of ‘fear.’ Specifically, it shows a score of 29. This score reflects increasing investor caution. Moreover, it also indicates a 10-point drop from last week.
Historically, Bitcoin halving events have served as a key indicator for predicting the next altcoin upswing. In particular, these cycles typically begin in the fourth quarter of each halving period. According to CryptoQuant CEO Ki Young Ju, investment giants are poised to make significant moves to revive the fourth quarter. As a result, major market shifts are expected towards the end of the year.