Altcoins
Traders predict a rally, why is sentiment “down”?
Bitcoin’s correction at the start of the second quarter weighed on the Altcoin market, and ‘gloomy’ sentiment appears to surround investors despite Q1 2024 recording one of the best performances in the crypto market. As prices regain strength, traders and analysts suggest a brighter future may be upon us.
Next stop for Altcoins: Altseason?
On Friday, some traders shared optimistic forecasts for altcoins. According to Crypto investor Jelle, the altcoin’s market cap chart “looks poised for a massive rally in the coming months.”
The investor strong points the similarities between the altcoin’s performance during previous bull runs. According to the chart, after the all-time high (ATH) of $474.5 billion in 2018, the altcoin market consolidated below the resistance zone in “preparation” for the next bull run.
Altcoins market cap sitting at $1.15 trillion. Source: CryptoJelle on X
During the 2020-2021 bull market, the altcoin market cap broke out and consolidated around a new support zone before continuing its upward trajectory to its latest ATH of $1.7 trillion. dollars.
As the investor pointed out, the performance of altcoins resembles that of the previous bull run. They seem to be consolidating after leaving the resistance zone. If history were to repeat itself, then altcoins could “remind everyone what they are capable of.”
Another trader and analyst, Titan of Crypto, sharing a prediction similar to that of Jelle. According to analysts, it has seen members of the crypto community believing that “there will never be another season.”
For those who have doubts, the trader suggests “zooming out” to get a broader perspective on where the market is in the cycle. According to its chart, which excludes Ether (ETH), altcoins are in the “2 bullish monthly candles followed by consolidation” phase.
Run up prediction for altcoins, excluding ETH. Source: Titan Of Crypto on X.
The chart also suggests that the subsequent rise could surpass the ATH of $1.13 trillion and reach a market cap of $3.25 trillion in the coming months. For the analyst, the “#Altseason2024 is inevitable”.
Forecasts are up, why is sentiment down?
Across different platforms, sentiment seems to lean toward “negative” despite the optimistic forecasts. Follis, content creator and founder of Chroma Trading shared his experience on X this Thursday.
According to the post, “the current sentiment is among the worst” he has seen in his years in the crypto community. Furthermore, he considers that “engagement is dead” because “everyone is silent” on X, Discord and Twitch.
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Current sentiment is one of the worst I’ve seen in my 3 years in crypto
Twitter, Twitch, Discord – everyone is silent, engagement is dead$BTC only -6% compared to ath but many alts down -40% or more. No real auctions to be found for a month or more, except on random rotations &…
— フォリス (@follis_) April 11, 2024
The post opened a discussion about the possible reason. Follis suggested a combination of “overleveraged major investors” and “traders who expected prices to rise indefinitely.”
Another user chimed in, suggesting traders lost a lot of money buying high and selling low on memecoins Solana and Base.
Top crypto trader Ansem joined the discussion, at variance with the “depressing” vision of the current market. The trader pointed out that BTC was at $70,000 and ETH at $3,500 at the time of his post. These prices represent an increase of 129.8% and 82.5% over the past year.
Likewise, he highlighted the performance of SOL from the bear market bottom and the remarkable performance of memecoins over the past six months. Many users agreed that withdrawals are usual during market cycles and ultimately suggest looking at the bigger picture.
Altcoins market cap is at $1.15 trillion. Source: TOTAL2 on Tradingview
Featured image from Unsplash.com, chart from TradingView.com