As the new year approaches, some analysts are predicting a “very bullish” year for altcoins in 2025. The sector is expected to explode soon and begin the much-anticipated “Altseason” after retesting a key support level.
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Altcoins Retest Key Support Level
Amid the recent market performance, many altcoins have struggled to register significant gains. However, several market watchers predicted that the altcoin would take off in January 2025.
By pump after the US election, the total crypto market cap, excl Bitcoin And Ethereum began a three-year downtrend in mid-November, breaking a year-to-date high of $788 billion. During this month's rally, the sector reached $1.1 trillion, the highest market value since 2021.
Since then, altcoins have struggled over the past two weeks, falling nearly 26% as Bitcoin missed $100,000, but remained above a key level despite recent performance.
Crypto Jelle pointed out that this section broke and Tested again “Its main trend line while removing all leverage in the process.” The analyst emphasized that budgets are “totally reset,” sentiment is at an all-time low, and the chart looks promising, adding that it's “very bullish for 2025.”
He also noted that the price action of altcoins is “very similar” to the first main price of Bitcoin retreat in 2021. According to the chart, the flagship crypto had a “strong rally, pullback, lower high and drop below the first low” before hitting new highs.
Based on this performance, the altcoins' pullback is apparently over, they “should start pulling back soon if this trend continues.” Likewise, Michael van de Pope expressed“The correction is almost over and the time is just on the horizon for altcoins and Bitcoin. It's a long time coming.”
Do you follow Altseason playbook 2021?
Titan of Crypto claimed Altcoins are about to explode, signaling that the “big end is near.” According to the analyst's chart, altcoins have been in a two-year bullish pattern and have broken out of the upper line of the pattern during recent market highs.
Based on this pattern, altcoins, excluding Ethereum, could have a 200% market cap of $1.4 trillion, surpassing the 2021 high of $1.13 trillion. The analyst also noted that ahead of the 2021 rally, the sector saw similar performance.
In 2020, altcoins launched in November and saw a significant drop of 30% early on. DecemberAnd that was followed by a four-week recovery. Then, they recorded a 143% rally in January 2021, leading to another three-month green candle before the first major retracement.
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Similarly, they have experienced a 26% drop this December, currently in the third week of an expected four-week recovery period. For the analyst, “early January could be the start of an 'only up' season.”
Finally, the Titan of Crypto added Over the past two cycles, the initial rally in altcoins has lasted between 140 and 175 days, suggesting that the cycle's rally could reach a new high around April or May. If it were to follow the performance of past cycles, it could see the first pump around the second quarter of 2025 before peaking in Q4.
Featured image from Unsplash.com, chart from TradingView.com
