The crypto community is abuzz with debates over the possibility of the next altcoin season, which coincides with Bitcoin’s $31k retest. While altcoins have historically yielded higher profits than Bitcoin, they also come with increased risk. Nevertheless, the shift in cash flow from Bitcoin to top altcoins and low-cap gems during market cycles suggests that a new season of bullish gains may be on the horizon.
Altseason will come again, but there is a time to respect.
The accumulation period after the 2017 bull run lasted almost 2 years, including a deviation above the range high.
TOTAL 3 has effectively broken out of the range and produced an alternate season close to the halfway mark.
We recently… pic.twitter.com/i0aXLDZBRQ
— ZERO IKA
(@IamZeroIka) June 25, 2023
A prominent analyst suggests that new altcoins have greater potential to outperform older ones due to factors such as new charts and greater appeal. However, the analyst believes that Bitcoin will continue to dominate the bullish uptrend in the coming weeks. From a pricing perspective, the analyst expects Bitcoin’s rally to continue until its dominance reaches 58 percent.
The analyst highlights that the recent breakout of BTC D. after a two-year downtrend has a strong correlation with altcoin performance. The current phase resembles a significant range of accumulation, which could lead to similar patterns seen in the past, with fakeouts and both upward and downward movements.
Market Outlook for Altcoin
Excluding Bitcoin and Ethereum, the analyst believes that the altcoin market has a higher chance of another bullish phase ahead of the expected major crypto bull season, which will occur after the halving next year. Despite the mixed regulatory landscape, the crypto market has held steady at a valuation of around $1.22 trillion.
In particular, rising demand from institutional investors, led by BlackRock through its Bitcoin ETF, indicates that mainstream adoption is on the way. A recent survey conducted by Triple-A reveals that the global crypto user base is around 420 million, with Asia having the largest number of users, over 260 million.
Conclusion
As the crypto market retests at $31,000 for Bitcoin, discussions of the next altcoin season have taken center stage in crypto social media. While altcoins offer higher profit potential, the associated risks should be considered.
The analyst suggests that altcoins, with the exception of Bitcoin and Ethereum, may experience a bullish outlook for the expected major bull season next year. Despite the regulatory challenges, the valuation of the crypto market remains resilient at $1.22 trillion, driven by increasing institutional interest, exemplified by BlackRock’s Bitcoin ETF. With a growing global user base, cryptocurrency adoption continues to increase, especially in Asia.
