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Notable cryptocurrency trader Luke Martin suggests that altcoins may be entering a favorable accumulation phase as an altcoin season appears to be developing, highlighting a buy signal that has not activated at such a low level in over three years.
In a post on X dated August 28th, Martin pointed out a crucial update on the “alts buy signal” chart, which reflects buy signals for the overall altcoin market based on historical trends.
Alt buy signal chart. Source: Luke Martin.
Martin noted that when Bitcoin was at this price point during the summer of 2020, it experienced a dramatic increase, surging sixfold from $10,000 to $60,000 in the latter half of that year.
He references this historical example as a compelling sign that altcoins may currently be at a “sell your house to buy more” stage, indicating a potential chance for traders to take advantage of undervalued altcoins ahead of a possible market upswing.
Are Altcoins Really About To Surge?
Although an altcoin season may seem improbable given the prevailing negative sentiment in the market, other indicators support the possibility of an altcoin rally.
In a post on X the same day, the pseudonymous trader Mags pointed out a significant technical development: the altcoin market cap chart has formed a falling wedge pattern.
Altcoin market cap chart. Source: Mags.
Mags characterized this formation as a “bullish continuation pattern,” suggesting a potential continuation or reversal of the current trend once the price breaks out of the wedge.
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For the altcoin market, the falling wedge pattern indicates that a bullish breakout could be imminent. This aligns with the views of other experts who suggest that the altcoin market may be gearing up for a substantial rally.
Michael van de Poppe, founder of MN Consultancy, emphasized the scale of the opportunity, stating that there is “so much on the tables to be made in the coming period” as the market remains 47% below previous highs.
The #Altcoin market capitalization is still down 47% from the highs. There’s so much on the tables to be made in the coming period. pic.twitter.com/LopbpU5Uk8
— Michaël van de Poppe (@CryptoMichNL) August 25, 2024
When Is Altcoin Season Coming?
The timing of the upcoming altcoin season continues to be a significant topic of discussion within the crypto community, particularly in light of current market conditions.
The Fear & Greed Index, a widely monitored sentiment gauge, currently stands at a score of 29, indicating a state of “fear.” This marks a notable decline of 10 points from the previous week, according to data from alternative.me, reflecting investor caution.
Importantly, the Bitcoin halving could act as a reference point for forecasting the next altcoin surge. In a post on X dated August 21st, CryptoQuant CEO Ki Young Ju observed that previous post-halving rallies have generally commenced in the fourth quarter (Q4) of each halving year.
In the last #Bitcoin halving cycle, the bull rally began in Q4. Whales won’t let Q4 be boring with a flat YoY performance. pic.twitter.com/LIWH53OpkD
— Ki Young Ju (@ki_young_ju) August 21, 2024
Young Ju further stressed that, in his opinion, “whales won’t let Q4 be boring with a flat YoY performance,” suggesting that significant market movements are anticipated as the year draws to a close.
As Bitcoin’s price movements often influence the broader cryptocurrency market, these developments could set the stage for an altcoin season as investors look for opportunities beyond Bitcoin.
The post Altcoin Season Inbound as Metrics Hit ‘Sell Your House’ Levels, Says Expert appeared first on Cryptonews.
