Is the Altcoin Correction Over? Here’s What to Expect Moving Into 2025

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As a seasoned crypto investor with over a decade of experience in this volatile market, I have seen my fair share of bull runs and corrections. The recent correction we are witnessing today, with Bitcoin diving to $91,400 levels and altcoins taking an even greater hit, is no stranger to me. However, I remain optimistic about the future trajectory of Bitcoin and altcoins, as renowned analyst Michael van de Poppe has expressed his belief that a significant bullish phase is on the horizon.

In my personal experience, I have learned that corrections are a natural part of the market cycle, and they often provide an opportunity for smart investors to accumulate more coins at lower prices. As such, I view this correction as a chance to add to my positions in Bitcoin and select altcoins, particularly Ethereum, which has underperformed Bitcoin significantly throughout 2024 but is expected to lead the next altseason.

I’ve also learned that historical comparisons can be useful in predicting future price movements, as the current ETH/BTC ratio of 0.03583 suggests a potential target price of $10,600 for Ethereum at the current Bitcoin prices. If Ethereum performs as it did during its breakout from December 2020 to its peak in November 2021, we could see an ETH/BTC ratio of 0.114, which would result in a $10,600 price for Ethereum. This potential rally could trigger a broader altcoin season with other participants like XRP, BNB, SOL, and DOGE joining the bandwagon.

As we move into 2025, I am keeping a close eye on technical indicators such as the golden cross, which has been forecasted to signal a bullish market trend by DeFiTracer. The analyst’s prediction of an alt market cap reaching $2.75 trillion during the next bull run is certainly something to look forward to, and I am positioning myself accordingly.

Of course, as with any investment, there are always risks involved in crypto trading, but I remain confident that a mega rally could resume in January 2025, provided we see a strong recovery in the coming weeks. As they say, fortune favors the bold, and I am ready to seize the opportunities that lie ahead!

Oh, and let’s not forget the old crypto adage: “Never invest more than you can afford to lose… unless it’s the last $5 in your pocket!” Happy trading, fellow investors!

After Bitcoin’s price fall to approximately $91,400 today, various alternative coins like Ethereum (ETH), XRP, Binance Coin (BNB), and others experienced even more significant corrections. Nevertheless, market experts anticipate that this could be the final phase of correction before a massive rally resumes in January 2025. Consequently, these analysts predict the total altcoin market value to reach $2.75 trillion during the next bull run.

Is Altcoin Correction Is Coming To An End?

Known crypto expert Michael van de Poppe has shown confidence about the upcoming direction of Bitcoin and other cryptocurrencies, suggesting a strong bullish period is imminent. In his words, “The downturn is nearing its end, and an ‘upward-only’ trend could soon materialize for Altcoins and Bitcoin.

This afternoon saw a dip in Bitcoin’s price to around $91,300, but it has since regained its losses and is now trading 0.70% higher at $94,026. With a market cap of $1.862 trillion, analysts are pointing towards $90K as an ideal entry point for long-term Bitcoin investors. They believe the market is approaching these levels and gearing up for significant growth.

Contrarily, the Alt Season Index plummeted from its high of 88 to a low of 49 as per Blockchain Center’s data, with a recent dip to 43 last week on December 26th. However, there seems to be a glimmer of hope as the index has shown signs of recovery since then, suggesting optimism as we approach 2025. Despite significant weekly losses for most top altcoins in the double digits, analysts remain optimistic about a robust recovery early in 2025.

Will Ethereum Drive the Altseason?

In the year 2024, Ethereum has lagged significantly behind Bitcoin in terms of performance. Nevertheless, market experts are hopeful that Ethereum prices will surge during Q1 2025, potentially kick-starting an “altseason.” However, it’s possible that Ether’s price may dip below $3,000 for a brief period before rebounding to reach new heights in the following year.

At this moment, the value of Ethereum compared to Bitcoin (ETH/BTC) is around 0.03583. If Ethereum repeats its performance from December 2020 to November 2021, where it surged significantly, the ETH/BTC ratio could potentially increase to 0.114. Given the current Bitcoin prices, this would indicate a potential Ethereum price of approximately $10,600.

According to analyst forecasts, the ETH/BTC ratio might reach 0.161, representing a potential increase of nearly 4.5 times. This would translate into Ethereum’s value potentially rising as high as $15,200 per ETH at current Bitcoin prices. If Bitcoin reaches a price point of $150,000, Ethereum could potentially soar to $21,900 based on this historical comparison.

If Bitcoin hits around $200,000, it’s predicted that Ethereum’s worth may fall between $22,800 and $32,000. This situation could create a noteworthy balance in the Ethereum-to-Bitcoin (ETH/BTC) ratio.

As an analyst, I’ve made a correction to my previous analysis on the ETH/BTC pair. The corrected ratio should stand at approximately 0.161, which is a significant increase from the initial 0.03583. This implies that the value of Ethereum in terms of Bitcoin has nearly quadrupled (~4.5x). However, I want to emphasize that my current analysis suggests that the prices for other pairs remain correct.

Prediction: If Ethereum (ETH) mirrors its performance from December 2020’s breakout to its peak in November 2021, and maintaining the current Bitcoin (BTC) price, ETH/BTC ratio would reach approximately 0.114. This implies an Ethereum value of around $10,600 per ETH.

— Mat (@materkel) December 30, 2024

This situation might lead to an expanded period of growth for altcoins such as XRP, BNB, SOL, and DOGE, as they may follow the trend. DeFiTracer anticipates that the most significant altcoin season will start in January, based on a significant technical indicator called the golden cross. This signal usually indicates a bullish market direction, causing increased optimism among traders. According to the chart below, the analyst expects the total market cap of altcoins to reach approximately $2.75 trillion.

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2024-12-31 16:22