Altcoins
Why is this analyst super optimistic? — TradingView News
Altcoins like Ethereum, Cardano, Solana and others could be lower than spot rates. However, according to one analyst who sees a parallel between the current formation and the 2020 market cycle, they are preparing for a possible surge.
In an article on X, the analyst claims that often, after a period of accumulation and a retest of previous highs, altcoins tend to be volatile. The crypto analyst also notes that Bitcoin has retreated from its all-time highs and is preparing for a possible retest of this level recorded in March.
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Although altcoins have been decimated, looking at price action over the past 24 hours, altcoins are on an upward trajectory, similar to the last cycle seen in 2020. Analyst says Bitcoin will catalyze the shift of the altcoin towards new levels and new valuations.
Will Altcoins repeat the 2020 cycle?
For now, it is difficult to predict the exact valuation of the top altcoins. However, the analyst notes a similar formation in the current price action.
When altcoins consolidated after a strong rally, prices tended to recover strongly. This rise was evident, especially once Bitcoin broke critical liquidation levels and entered “price discovery” or new all-time highs. www.tradingview.com/x/1I887hTv
Currently, Bitcoin is in this position. The coin is trading lower and cooling off from all-time highs. Even after higher highs last week, the bulls failed to surpass the $71,700 level in the daily chart. With BTC collapsing, altcoins also fell, with Ethereum, Solana, and major coins falling below support levels.
Will Ethereum and other Altcoins rebound strongly?
Altcoin season might come sooner this time around, especially once Bitcoin recovers. Possible triggers include the upcoming Bitcoin halving event. Analysts say the halving would likely create a supply crisis, causing a shortage. If institutions channel the same level of demand, BTC will likely rise, surpassing $71,700 and even $73,800, all-time highs.
Beyond that, upcoming network upgrades in Ethereum, like the recently mentioned “Purge” and Firedancer integration in Solana, could trigger demand. Developers are working on Voltaire in Cardano. All these changes aim to make the best smart contract platform more reliable and improve its performance.
In addition to network upgrades, analysts are eyeing the possible approval of Ethereum spot exchange-traded funds (ETFs). If the US Securities and Exchange Commission (SEC) approves this product, ETH could benefit by suppressing others. It could also accelerate the development of suitable laws, especially now that BlackRock believes tokenization and real-world assets (RWA) are the future of finance.