Explore two scenarios predicting the start of an altseason in the cryptocurrency market, along with expert insights and cautionary advice for investors.
Bitcoin (BTC) surged to hit its record peak of $69,000 before swiftly retracting below $60,000 on the same day. Traders in the cryptocurrency realm eagerly anticipate the onset of an altseason, envisioning a surge in altcoins to reclaim previous highs.
Addressing this anticipation, Credible Crypto shared insights on how the cryptocurrency market typically behaves during bullish cycles. The trader previously recounted a successful venture trading Dogecoin (DOGE), wherein a $10,000 investment yielded $100,000 within 48 hours.
Credible Crypto presents two potential scenarios for the initiation of a substantial altseason. Nonetheless, both scenarios indicate that the altcoin market for this cycle could kick off imminently, prompting investors to strategize their positions.
It's essential to note that these scenarios are grounded in historical trends and may not necessarily replicate past actions.
Two Potential Scenarios to Spark an Altseason
Firstly, Credible Crypto suggests that Bitcoin might test historical resistance levels and rebuff a breakout attempt. In this scenario, the trader anticipates a significant correction followed by a consolidation phase, potentially igniting an altseason.
“BTC approaches prior ATH but encounters resistance/consolidates at peak levels for several weeks before embarking on a rapid upward trajectory, eventually doubling in a matter of weeks. Altcoins commence rallying immediately after BTC touches its prior ATH, while BTC undergoes consolidation.” – Credible Crypto
Alternatively, Bitcoin could surpass its previous all-time high and register substantial gains within a few weeks. Following this surge, the crypto expert envisions a consolidation period heralding the onset of the altcoin cycle.
“BTC breaches its prior ATH decisively and proceeds to double in value within a few weeks—this represents a significant breakout with minimal pause, with altcoins receiving minimal attention until Bitcoin pauses post-breakout. Altcoins commence rallying en masse several weeks after BTC surpasses its previous ATH. In the latter scenario, altcoins begin rallying almost immediately after BTC touches its prior ATH.” – Credible Crypto
In essence, the trader anticipates altcoins to shine only when Bitcoin's price action cools down during consolidation phases. This could materialize either following a correction, failing to breach the $69,000 mark, or after a surge in price discovery.
Interestingly, Bitcoin appears to align closely with the first scenario nearly two days after Credible Crypto's post. BTC plummeted to as low as $59,458 on March 5, subsequent to testing the all-time high, and currently hovers around $66,319. This range could consolidate within $64,000 and $68,000, potentially ushering in an altseason.
In this context, Finbold has curated a selection of altcoins poised to potentially increase their capitalization by tenfold during an altseason.
However, it's imperative to recognize that cryptocurrencies are characterized by volatility and unpredictability, and circumstances can evolve abruptly. Therefore, investors must exercise caution and conduct thorough evaluations of altcoin projects while establishing investment positions.