Bitcoin’s correction at the start of Q2 dragged down the Altcoins market, and a “gloomy” sentiment appears to surround investors despite Q1 2024 registering one of the best performances for the crypto market. As prices recover momentum, traders and analysts suggest a brighter future might be around the corner.
Altcoins Next Stop: Altseason?
On Friday, some traders shared optimistic forecasts for altcoins. According to investor Crypto Jelle, the altcoin market cap chart “looks primed to go on a massive rally in the coming months.”
The investor highlights the similarities between the altcoin’s performance during the previous bull runs. Per the chart, after 2018’s all-time high (ATH) of $474.5 billion, the altcoin market consolidated under the resistance zone in “preparation” for the next bull run.
Altcoins market cap sitting at $1.15 trillion. Source: CryptoJelle on X
During the 2020-2021 bull market, altcoins’ market cap broke out and consolidated around a new support zone before continuing its upward trajectory to its last ATH of $1.7 trillion.
As the investor highlighted, altcoins’ performance looks like that of the previous bull run. They are seemingly consolidating after a breakout from the resistance zone. If history were to repeat itself, then altcoins could “remind everyone what they’re capable of.”
Another trader and analyst, Titan of Crypto, shared a similar prediction to Jelle’s. According to the analysts, he’s seen crypto community members believing that “there’ll never be another altseason.”
To those in doubt, the trader suggests they “zoom out” to get a broader perspective on where the market is in the cycle. Per his chart, which excludes Ether (ETH), altcoins are at the “2 bullish monthly candles followed by consolidation” phase.
Run up prediction for altcoins, excluding ETH. Source: Titan Of Crypto on X.
The chart also suggests that the subsequent run-up could surpass the $1.13 trillion ATH and soar to a market cap of $3.25 trillion in the coming months. To the analyst, the “#Altseason2024 is inevitable.”
Predictions Are Up, Why Is The Sentiment Down?
Across different platforms, the sentiment seems to lean towards “negative” despite the optimistic forecasts. Follis, content creator and founder of Chroma Trading shared his experience on X this Thursday.
According to the post, “sentiment at the moment is some of the worst” he’s seen during his years in the crypto community. Moreover, he considers “engagement is dead” as “everyone is quiet” across X, Discord, and Twitch.
Sentiment at the moment is some of the worst I’ve seen in my 3y in crypto
Twitter, twitch, discord – everyone is quiet, engagement is dead$BTC only -6% from ath but lots of alts down -40% or more. No real bid to be found for a month or more, except on random rotations &…
— フ ォ リ ス (@follis_) April 11, 2024
The post opened a discussion as to what could be the reason. Follis suggested a combination of “over-leveraged top longers” and “traders who expected price to go up indefinitely.”
Another user weighed in, suggesting traders lost significant money buying high and selling low on Solana and Base memecoins.
Top crypto trader Ansem joined the discussion, disagreeing with the “depressing” take on the current market. The trader pointed out that BTC was at $70,000 and ETH at $3,500 at the time of his post. These prices represent a 129.8% and 82.5% increase in the past year.
Similarly, he highlighted the performance of SOL compared to the bear market bottom and the remarkable performance of memecoins in the past six months. Many users agreed that drawdowns are usual during market cycles and ultimately suggested looking at the bigger picture.
Altcoins market cap is at $1.15 trillion. Source: TOTAL2 on Tradingview
Featured Image from Unsplash.com, Chart from TradingView.com
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