Analysts Forecast FaceMelting Comeback of Altseason Towards Year End

In the past week, the cryptocurrency market, with the exception of Bitcoin, has decreased by 3%, and over the last month, it has dropped by 10%, indicating a shift of funds away from altcoins. Analyst Michael van de Poppe predicts that this could be the final correction before new capital enters the altcoin market, potentially leading to a 100% rally. Altcoin Sherpa outlines two conditions for an “Altcoin Season”: a final capitulation or a prolonged consolidation period. The Altcoin Season Index currently stands at 20 out of 100, with 75 needed to signal the start of an altcoin season. Analyst Captain Faibik forecasts a significant surge in altcoins in Q3 and Q4 of 2024, despite recent 30-40% drops in many altcoins.

The crypto market, excluding Bitcoin, has undergone significant volatility in recent months, with altcoins facing the brunt of the downturn. However, there is optimism among analysts about a potential resurgence in the altcoin market, citing historical patterns and market indicators that suggest a turnaround may be imminent.

In the last week, the crypto market, excluding Bitcoin, has contracted by 3%, extending to a 10% decline over the last month, indicating a capital shift away from altcoins, potentially leading to their devaluation over time. Despite this bearish sentiment, some experts believe that altcoins with strong fundamentals or reduced supply could make a comeback.

Renowned crypto analyst Michael van de Poppe has shared an optimistic outlook, suggesting that the current market correction could be the final one before fresh capital flows back into the altcoin market. Van de Poppe points to historical examples where altcoins like Solana (SOL), Fetch.ai (FET), and Render Token (RNDR) saw impressive gains following similar market conditions.

Another analyst, known as Altcoin Sherpa, outlines two prerequisites for such a rally to materialize. The first is a final capitulation, typically manifesting as a last market shakeout. Alternatively, a prolonged consolidation period could set the stage for an altcoin resurgence.

The current market dynamics present a challenging environment for altcoins. Bitcoin’s dominance has been on the rise, currently standing at 55.36% of the total crypto market capitalization.

The Altcoin Season Index, a metric used to gauge the relative performance of altcoins against Bitcoin, currently sits at a low 20 out of 100. A score of 75 is typically required to signal the start of an altcoin season.

Despite these hurdles, some analysts remain bullish on the long-term prospects of altcoins. Captain Faibik forecasts a significant surge in altcoin values during the third and fourth quarters of 2024 and advises investors to capitalize on the current market dip, suggesting that now is an opportune time to buy and hold for the next 4-6 months.

The altcoin market’s current state of flux is reflected in its declining market dominance, which has fallen to 9.79%, with a total market capitalization of $217.175 billion. While this decline might deter some investors, others see it as a potential buying opportunity before an anticipated rally.