According to CryptoPotato, the cryptocurrency market is showing signs of a potential altcoin rally, similar to the one that occurred in June 2019, just before the United States Federal Reserve cut interest rates. The chart pattern for this cycle is identical, and if history repeats itself, a similar final flush out of altcoins may be imminent before this month’s Fed rate decision on June 12. However, the recent fall in crypto and stock markets due to U.S. jobs data could also mean that the Fed will leave rates unchanged.
Analysts are predicting that an altcoin season is just around the corner. Crypto analyst ‘Moustache’ compared the last market cycle with the current one, noting the similarities in structure and commenting that history doesn’t repeat, but it does rhyme. Michaël van de Poppe, MN Trading cofounder, commented on the recent market correction, adding that he was expecting a bullish breakout happening in the coming week and was still happily positioned into altcoins.
Bitcoin market dominance is one solid indicator of an approaching altcoin rally. It is currently 55.2%, having climbed almost 8% since the beginning of the year. However, Bitcoin dominance needs to break below 50% before any hopes of altseason can really materialize and this doesn’t look like happening for a while yet.
Many have been eyeing Ethereum as it usually leads any altcoin rally. However, ETH has also retreated over the past few days dropping 3.3% over the past week in a fall to $3,680 during early trading on June 9. The altcoins are in more pain at the moment, with a sea of red across the board this weekend and heavier losses for Toncoin (TON), Shiba Inu (SHIB), and Near Protocol (NEAR). If the Fed leaves interest rates at 5.25% to 5.50% next week, crypto markets, particularly altcoins, could see more volatility and pain before any meaningful gains.
