Analysts are shifting focus to altcoins amid Bitcoin's price decline, anticipating a potential altseason. This phase, often occurring after Bitcoin halvings, is expected following the fourth Bitcoin halving in April.
Crypto analyst Mags highlights that altcoins are trading at 60% to 80% of their previous highs. The Total2 chart, tracking the top-125 cryptocurrencies excluding Bitcoin, is above an ascending trendline, signaling potential bullish momentum.
Mustache, another analyst, observes that altcoins are following a perfect Wyckoff accumulation pattern, consolidating before a potential upward move. His analysis, based on higher timeframes, suggests price action is tightening within a descending broadening wedge pattern.
Wyckoff Accumulation Pattern indicates that institutional investors accumulate assets at lower prices, weakening selling pressure and setting the stage for a price reversal.
CryptoEstigma suggests the current bear market corrects an abnormal rally that occurred post-fourth Bitcoin halving, leading to market correction as altcoins rallied earlier than usual.
U.S. economic events, including Federal Reserve decisions, geopolitical tensions, and recession fears, contribute to market volatility. While some foresee an altcoin season, others warn against over-investing due to rising Bitcoin dominance and negative Ethereum ETF flows.
Some analysts suggest rebalancing portfolios to prepare for any market outcome, though expectations of altseason returns are tempered by the potential for diminished gains compared to past cycles.
