As the new year approaches, altcoins in 2025 will be 'very bullish.' The industry is expected to explode soon and open the long-awaited 'altcoin season' after retesting key support levels.
Altcoins are retesting key support levels.
In recent market performances, many altcoins have struggled to achieve significant gains. However, some market observers predict that altcoins will begin to rise as early as January 2025.
Driven by the rise of the cryptocurrency market after the U.S. elections, the total market value of cryptocurrencies other than Bitcoin and Ethereum broke a three-year downward trend in mid-November, surpassing the annual high of $788 billion. During this month's rebound, the cryptocurrency industry soared to $1.1 trillion, marking the highest market value since 2021.
Since then, altcoins have been struggling for the past two weeks, with Bitcoin dropping below the $100,000 mark, down nearly 26%, but despite the recent poor performance, it remains above key levels.
Crypto Jelle pointed out that the industry has broken through and retested its 'main trend line while destroying all leverage.' The analyst emphasized that financing 'has been completely reset,' sentiment is at a low point, the charts look promising, and he added that he is 'very optimistic about 2025.'
He also noted that the price movements of altcoins are 'very similar' to Bitcoin's first significant pullback in 2021. According to the chart, this flagship cryptocurrency experienced 'strong rebounds, corrections, lower highs, and then broke below the first low' before breaking to new highs.
From this performance, the correction of altcoins seems to have ended, 'if this continues, they should start to rebound soon.' Similarly, Michaël van de Poppe stated, 'The adjustment is almost over, and the rise of altcoins and Bitcoin is about to come. Expect more performance in the future.'
Will altseason follow the script of 2021?
Titan of Crypto asserts that altcoins will soon explode, hinting that 'the grand finale is near.' According to the analyst's chart, altcoins are already in a two-year cup and handle formation, having recently broken through the upper line of the formation at the market's high point.
According to this pattern, the market value of altcoins excluding ETH could rise by 200%, reaching $1.4 trillion, surpassing the $1.13 trillion high in January 2021. The analyst also noted that a similar performance occurred in the industry before the rise in 2021.
In November 2020, altcoins exploded and then dropped sharply by 30% in early December, followed by a four-week rebound. They then surged 143% in January 2021, leading to three more months of green candles before the first major pullback.
Similarly, their stock price also fell by 26% this December and is currently in the third week of an expected four-week recovery period. For analysts, 'early January may mark the beginning of a season of only rising.'
Finally, Titan of Crypto added that in the past two cycles, the initial rise of altcoins lasted 140 to 175 days, suggesting that this rally may hit new highs around April or May. Based on the performance of previous cycles, it could rise for the first time around the second quarter of 2025, then peak in the fourth quarter.