Altcoin
Is the next Altcoin season around the corner? Some traders believe so
Last updated: April 29, 2024 5:26 pm EDT | 1 minute read
With Bitcoin showing signs of consolidation, anticipation is building around a potential new altcoin season.
The recent price movement has sparked discussion and speculation among traders about the possibility of an upcoming altcoin season.
Is Bitcoin’s Price Recovery Enough to Fuel the Next Altseason?
Prior to the weekly close on April 28, Bitcoin rebounded above $64,000 and data points to a strengthening of Bitcoin’s price over the weekend.
At the time of writing, Bitcoin is hovering around $62,600, while the total altcoin market capitalization has seen a modest increase of 1%, suggesting a potential positive trend for these alternative cryptocurrencies.
Baffo trader and commentator predicted a true altcoin season, rivaling any historic record achieved in 2017.
In response to altcoin activity, ppopular trader Skew noted on X (formerly Twitter) that “Alts have rebounded well, but breaking the pattern of setting weekly highs on Monday and Tuesday remains crucial.”
Skew suggested that there is a possibility that sell-side pressure will hinder Bitcoin’s progress towards its near highs.
The trader suggested that Tether is attempting to regain its position after falling below an ascending trend line earlier this year. This decline was simply a backtest.
According to his statement, there is an inverse relationship between the value of USDT (Tether) and the value of altcoins.
Ethereum’s possible contribution to the next Altcoin season
The price of Ethereum has seen a substantial decline over the past six months due to soaring gas rates.
This month alone, ETH has fallen 10.46% from its April 9 high of $3,722.
In the last week, Ether has seen a slight increase of 4.3% in the market, but still not enough to recover.
Analysts at crypto analytics platform Santiment suggested that the Ethereum gas fees drop could potentially signal an upcoming altcoin season.
🤑 #EthereumThe average commission level fell to just $1.12 per online transaction, the lowest average daily cost since October 18th.
Traders historically move through sentiment cycles where they experience this #crypto is going “To the Moon” or feeling that “It Is Dead”, which can… pic.twitter.com/8b8rLMLyIf
— Santiment (@santimentfeed) April 28, 2024
According to Santiment’s X post, Ethereum’s average transaction fee has dropped to $1.12.
Santiment predicts a faster-than-expected turnaround for Ethereum and associated altcoins due to the recent retracement and reduced demand on the network.