As a seasoned researcher in the crypto space with several years of experience, I have witnessed the ebb and flow of various market cycles, including the infamous altcoin seasons. The current market conditions, with Bitcoin reaching new all-time highs and analysts predicting an imminent altcoin season, resonate strongly with me due to striking similarities I’ve noticed between the present day and the 2020 cycle.
The term “altcoin season,” which signifies a prolonged surge in the prices of cryptocurrencies other than Bitcoin, is deeply intertwined with the crypto market’s dynamics. Despite anticipation that this altcoin boom would commence following Bitcoin reaching an unprecedented new high, it has yet to materialize. However, renowned crypto analyst Capo suggests a potential correlation between the current cycle and the 2020 cycle, indicating that the altcoin season could be just around the corner.
Capo Of Crypto Finds Similarities Between 2020 And 2024
Expert: In a recent update on his platform, X – where crypto analyst Capo of Crypto is active – shared that based on current market patterns, the conditions for an altcoin rally similar to what was seen during the 2020 bull run could be emerging.
In his analysis from 2020, the cryptocurrency expert explained his perspective on why an altcoin rally was imminent. He highlighted several key indicators in that thread. Firstly, Bitcoin’s dominance had hit a resistance point. Secondly, the price of Bitcoin had potentially reached its bottom. Lastly, there was a general bullish sentiment among crypto investors, indicating a higher tolerance for risk.
During December 2020, the price of Bitcoin had reached its lowest point. If this holds true, it implies that the Bitcoin price drop has come to an end. Furthermore, investors might be planning to shift their gains from Bitcoin into alternative cryptocurrencies, signaling the commencement of another altcoin market surge.
Moving forward, the analyst notes that the Bitcoin market share was approaching a resistance point. In the previous year, this threshold was approximately 72-75%. Yet, presently, it appears that the resistance level for Bitcoin’s market dominance is around 55-60%.
During that period, Capo highlighted that the decline of Bitcoin’s dominance and the substantial increase in the “OTHERS” sector from its previous level would signal the beginning of an altcoin rally. Currently, the “OTHERS” dominance stands at 9.97%, based on TradingView data. However, if Capo’s prediction for 2020 were to hold true, the dominance should rise above 20% to trigger the altcoin season.
What To Do In An Altcoin Season
During altcoin seasons, the value of lesser-known cryptocurrencies tends to surge, providing valuable opportunities for investment growth. Nevertheless, be wary that these periods are also prone to instances of manipulation, where coin prices artificially inflate only to crash, resulting in financial losses for unwary investors.
Capo highlighted in the 2020 X forum that numerous altcoins are expected to experience significant price surges. However, he emphasized a word of caution for investors: “The adage ‘what is trash remains trash’ still applies. Not every altcoin will yield extraordinary returns.”
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD COP PREDICTION
- BICO PREDICTION. BICO cryptocurrency
- USD ZAR PREDICTION
- USD PHP PREDICTION
- VANRY PREDICTION. VANRY cryptocurrency
- USD CLP PREDICTION
- NAKA PREDICTION. NAKA cryptocurrency
2024-07-25 17:42