Bitcoin price has been struggling to maintain support at $64,800 after its fourth halving on April 20. Meanwhile, altcoins, including memecoins and layer-1 cryptocurrencies, have been outperforming Bitcoin in the past week, leading to speculation about the arrival of altseason.
Altseason refers to a phase in the crypto market where altcoins experience significant value surges and often outperform Bitcoin. On April 24, trader and analyst Moustache noted that TOTAL2, which represents the total market capitalization of altcoins, had completed the correction phases of the Wyckoff method and was in the midst of a breakout.
Investors have been eagerly anticipating a rise in altcoin prices due to the potential for higher risk-to-reward returns. Moustache’s analysis also revealed that TOTAL2 had broken out of a falling wedge pattern on the monthly chart, similar to what was seen during the 2020-2021 market cycle.
Entrepreneur and crypto investor Lark Davis also observed that the altcoin market cap had reclaimed crucial support provided by the 50-day exponential moving average. Although this support was later lost, a bullish cross from the moving average convergence divergence (MACD) indicator suggested that altcoins were poised for upward movement.
However, it’s important to note that altcoins have seen corrections since their highs in mid-March. Bitcoin remains 12% below its all-time high, and the recent flash crash on April 24 threatened to push its price below $65,000. As a result, sentiment towards altcoins has become pessimistic, with doubts about the possibility of an altseason.
The decline in the altcoin season index by Blockchain Center further supports this sentiment. The index shows that only 41% of the top 50 altcoins have outperformed Bitcoin in the last 90 days, indicating that it is not yet altcoin season.
Disclaimer: This article does not provide investment advice or recommendations. Investing and trading in cryptocurrencies carry risks, and readers should conduct their own research before making any decisions.