Is the Next Altcoin Season Around The Corner? Some Traders Believe So
With Bitcoin exhibiting signs of consolidation, anticipation is building around a potential new altcoin season.
The recent price movement has sparked discussions and speculation among traders about the possibility of an upcoming altcoin season.
Is Bitcoin’s Price Recovery Enough to Fuel the Next Altseason?
Ahead of the April 28 weekly close, Bitcoin bounced past $64,000, and data indicates a strengthening of Bitcoin’s price over the weekend.
At the time of writing, Bitcoin hovers around $62,600, while the total altcoin market capitalization has seen a modest 1% increase, hinting at a potential positive trend for these alternative cryptocurrencies.
Trader and commentator Moustache predicted a full-fledged altcoin season, rivaling anything since the all-time highs in 2017.
Responding to the altcoin activity, popular trader Skew noted on X (formerly Twitter) that “Alts bounced nicely, but breaking the pattern of setting weekly highs on Mondays and Tuesdays remains crucial.”
Skew suggested that there is a possibility of sell-side pressure hindering Bitcoin’s progress towards its near-range highs.
The trader suggested that Tether is attempting to reclaim its position after breaking below a rising trendline earlier this year. This dip was merely a backtest.
According to his statement, there is an inverse relationship between the USDT (Tether) value and the value of altcoins.
Ethereum’s Possible Contribution To The Next Altcoin Season
Ethereum’s price has experienced a substantial drop over the past six months due to gas fees skyrocketing.
ETH has dropped 10.46% this month alone from its April 9 high of $3,722.
In the past week, Ether has seen a slight increase of 4.3% in the market, but still not enough to bounce back.
Analysts from crypto analytics platform Santiment suggested that the drop in Ethereum gas fees could potentially signal an upcoming altcoin season.
🤑 #Ethereum's average fee level has dipped to just $1.12 per network transaction, the lowest average cost in a day since October 18th.
Traders historically move between sentimental cycles of feeling that #crypto is going "To the Moon" or feeling that "It Is Dead", which can… pic.twitter.com/8b8rLMLyIf
— Santiment (@santimentfeed) April 28, 2024
According to Santiment’s X post, Ethereum’s average transaction fee has fallen as low as $1.12.
Santiment predicts a quicker turnaround for Ethereum and associated altcoins than expected due to the recent retracement and reduced demand on the network.
