As 2024 draws to a close, expectations for the future in the global crypto market are heating up again. Some analysts boldly predict that 2025 may usher in a 'very bullish' altcoin market, kicking off the much-anticipated 'altcoin season'. If this prediction comes true, the altcoin ecosystem may experience a new round of explosive growth within the next two years.
The starting point for altcoin season?
Looking back at the market performance in recent months, while Bitcoin and Ethereum have maintained their dominant positions, other altcoins have struggled somewhat. However, market analysis shows that the overall market capitalization of altcoins has still held onto key support levels after breaking through the annual high of $788 billion, laying the groundwork for future increases.
Especially after the US elections, the sentiment in the crypto market has been boosted, with the total market capitalization soaring to $1.1 trillion at one point. This rebound not only solidified market confidence but also provided more possibilities for the next phase of altcoin trading.
Crypto analyst Crypto Jelle mentioned that the market has currently broken through and retested the 'major trend line', while also clearing excessive leveraged trading. The reset of financing data and the low market sentiment have instead created conditions for a future upward trend. He stated, 'From a technical perspective, the outlook for 2025 is very promising.'
Will altcoins replicate the glory of 2021?
Analysts Michaël van de Poppe and Titan of Crypto have put forth an intriguing point: the current price movement of altcoins is very similar to Bitcoin's first significant pullback in 2021. Based on their observations, the market performance from late 2020 to early 2021 can provide valuable reference for the current stage.
During the 2021 market cycle, Bitcoin experienced a 'strong rebound, pullback, high point decline, and drop below the first low' before breaking through to a historic high. Altcoins followed closely behind, experiencing explosive growth. This trend suggests that altcoins may enter a similar upward cycle after the current pullback ends.
Titan of Crypto further pointed out that the market capitalization of altcoins has completed a two-year 'cup and handle' pattern and has recently broken through the key upper boundary. Based on this technical pattern, he predicts that the market capitalization of altcoins may increase by 200%, rising from the current level to $1.4 trillion, potentially exceeding the historical high set in 2021.
When will the altcoin season arrive?
Historical market data shows that the initial upward momentum of altcoins usually lasts for 140 to 175 days. Following this pattern, January 2025 could become the starting point for a 'rise-only' season, with the entire upward cycle peaking in the second quarter and reaching its maximum in the fourth quarter.
In contrast, the altcoin explosion in 2020 began in November, followed by a brief 30% pullback in December, leading to a four-week recovery. This was then followed by an astonishing 143% increase in January 2021. The current market performance shares many similarities with that time, such as the current pullback in December being close to 26%, and analysts expect the 'recovery window' to gradually open.
Looking ahead, the upward potential of altcoins should not be underestimated. The transition from technical breakthroughs to shifts in sentiment, along with the stabilization of major support levels, has laid a solid foundation for the upcoming altcoin season.
If you want to seize the opportunity of the altcoin season as soon as possible, follow Mr. Qiu and explore market trends together. From interpreting trends in 2025 to the latest strategic analysis, we will accompany you through the waves and strive to be winners in the crypto space! After all, investing is like grilling skewers; the timing must be just right, and the seasoning must be rich, and Mr. Qiu is the one who helps you find the 'secret recipe'!
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