The much-anticipated altcoin season, during which huge capital flows from Bitcoin toward alts continue to fail to manifest, as major tokens like Ethereum struggle to initiate a significant rally. With top altcoins facing a pullback, the possibility of an altseason remains low.
Altcoin Season Unfolding Out Of The Blue
Heightened volatility in the general crypto market has triggered uncertainty and disbelief about an altcoin season happening in the ongoing bull cycle. Technical expert and investor Titan of Crypto has shed light on the much-awaited season, highlighting the possibility that one could unfold in the short term.
His forecast is based on historic cycle trends, particularly after the Bitcoin Halving event. Using past cycle trends, the expert believes that the market is showing early signs of a potential altseason.
Looking at the chart, an altcoin season tends to begin at least 200 days following the Halving event as seen in the 2017 and 2021 cycles. Meanwhile, after about 273 days since the last Halving event, an altseason in this cycle seems to be on the horizon. “With consensus leaning towards no Altseason this cycle, history suggests this might be the perfect setup for one to unfold,” Titan of Crypto stated.
While Titan of Crypto anticipates an altseason in the short term, Ali Martinez, a technical and on-chain expert thinks otherwise. In fact, the on-chain expert believes that it is unlikely that there will be an altseason this cycle, citing altcoins market cap trends over the years.
According to Ali Martinz, the alt market capitalization has decreased in March for 5 out of the last 7 years. During these periods, there was either no altseason or it performed poorly.
As a result, the expert expects the alt market cap to witness a decline in March this year, which might result in the absence of an altseason this cycle. “So, if you’re 100% convinced an altseason is coming, don’t be shocked if your dreams get shattered,” he stated.
An Ideal Time To Accumulate Alts?
Presently, the key Altcoin Season Index metric has risen to its most extreme levels, which suggests an ideal time to accumulate some alts. The index in the daily time frame shows that the market has returned to the Bitcoin season zone with a percentage change period of 60. Specifically, this indicates a critical moment for altcoins, which is increasing Bitcoin’s dominance.
Furthermore, the index in the 1-hour time frame reveals a sharp drop in alt prices in the near term, which some may consider as an opportunity to accumulate. Investors are advised to be careful as only 30-40% of altcoins are in oversold territory in their daily Relative Strength Index (RSI). This suggests that many alts, particularly the ones that have increased drastically lately, might decline further.
Although acquiring a few alts might be sensible, caution must be taken because retail traders are highly exposed to leverage. In the meantime, strategies such as intelligent stop losses and Dollar-Cost Averaging (DCA) are valid methods during this period.
Featured image from iStock, chart from Tradingview.com
