Well-known crypto analyst Michael van de Poppe has shared his insights in X post that altcoins are trading at the lowest levels in three years. His analysis suggests that a massive bull run for altcoins may be just around the corner.
According to Van de Poppe, the following are some of the factors that suggest that an altcoin season could be possible. This week’s Federal Reserve meeting which indeed had a rather dovish tone has made the market sentiment bearish. However, the treasury bond yields have declined significantly, which shows that the market does not expect further interest rate increases but it is expecting that rates will be cut earlier than expected.
Van de Poppe further said that he expects more than one rate cut from the FED and all-time treasury yields have been witnessed during many altcoin rallies. For instance, until the end of October 2023, many of the altcoins jumped 5x-10x against Bitcoin before Bitcoin regained dominance.
Altcoins Show Bullish Potential
The crypto market could be generally regarded as having been in a bearish state during the past three years, but there have been periods of bullishness occasionally. Chainlink exemplifies this trend. It largely reversed in early 2022, but rallied more than 120 % in the second half of the year.
According to analysts, a similar trend was observed in 2023 where the prices of Chainlink gained about 150% in its second half. The correction that occurred in 2024 is deeper than 60%; however, there are indications of a reversal by the end of the year.
The analyst also pointed to the chart of OTHERS/BTC as an example which forms a double bottom. This indicates that the rest of the coins also colloquially known as alternative coins are currently trading at their cheapest price per Bitcoin in the last three years. This pattern, which was unveiled in June, means the heavy correction phase could be ending soon and therefore a potential massive rallying coming.
Another renowned analyst, Crypto Yoddha, has also a slight hope for alternative coins to bounce back. Yoddha also noted that altcoins remain far from their weekly 200 MA for a big bounce as long as a higher low is made to signify a bullish continuation.
Yoddha confirmed that altcoins are soon going to bounce back hard which also gives strength to the fact that the rally is soon hitting and is on the way.
The opinion and analysis of both analysts point toward the fact that the stage is set for a good altcoin season. Since altcoins are trading at all-time low prices, the investors could experience high returns once the market moves to the bull phase. This may signal a revival of the altcoin season thus creating a perfect time to invest in that market.
