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 retest key support levels
In recent market performance, 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 downtrend in mid-November, surpassing the annual high of $788 billion. In 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 recent poor performance, it remains above critical 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 the financing "has been completely reset," sentiment is at a low point, charts look promising, and added that he is "very optimistic about 2025."
He also noted that the price action of altcoins is "very similar" to Bitcoin's first significant pullback in 2021. According to the chart, this flagship cryptocurrency experienced "strong rebound, pullback, lower highs, and broke below the first low," before breaking to new highs.
From this performance, it seems that the altcoin pullback has ended, "if this situation continues, they should start to rebound soon." Likewise, Michaël van de Poppe stated, "The adjustment is almost over, and the time for altcoins and Bitcoin to rise is approaching. Expect more performances 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 have been in a two-year cup-and-handle formation, breaking the upper line of the formation at the recent market peak.
According to this pattern, the market value of altcoins excluding ETH could rise by 200%, reaching $1.4 trillion, exceeding the January 2021 high of $1.13 trillion. The analyst also noted that a similar performance was observed in the industry before the rise in 2021.
In November 2020, altcoins exploded and then fell sharply by 30% in early December, followed by a four-week rebound. Then, they surged 143% in January 2021, which led to three additional months of green candles before the first significant pullback.
Similarly, in December this year, their stock price also fell by 26%, currently in the third week of the anticipated four-week recovery period. For analysts, "early January may mark the beginning of the 'only up, no down' season."
Finally, Titan of Crypto added that the initial surge of altcoins lasted 140 to 175 days in the past two cycles, suggesting that this rally may peak around April or May. Following the performance of previous cycles, it could first rise around the second quarter of 2025 and then peak in the fourth quarter.$PEPE