Analyst eyes continuation for the altcoin season after recent correction
Altcoins recently experienced an overdue correction amid a Bitcoin (BTC) rejection of the $100,000 psychological resistance. Yet, the prominent technical analyst CrypNuevo believes the altcoin season is ready...
Altcoins recently experienced an overdue correction amid a Bitcoin (BTC) rejection of the $100,000 psychological resistance. Yet, the prominent technical analyst CrypNuevo believes the altcoin season is ready for continuation after creating interesting buying opportunities.
In a recent post on X, CrypNuevo recalled a previous analysis from one of his videos. Particularly, the analysis predicted Bitcoin Dominance (BTC.D) to correct from the ongoing drop, temporarily pausing the altcoin season.
As warned, this correction would follow a Bitcoin rejection of the $100,000 mark, punishing altcoins with a two-digit crash. The analyst, however, explained he would use this dip to increase his altcoins positions, which happened recently.
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Now, CrypNuevo forecasts BTC.D will continue its downward movement, fueling another altseason – with smaller-cap cryptocurrencies outperforming the leader.
— CrypNuevo 🔨 (@CrypNuevo) December 12, 2024Potential retrace before continuation possibly done.
Thanks to understanding a few days ago that BTC.D was going to go up at the same time as BTC would fill the $94k wick, we could anticipate and buy the big discount in altcoins.
All according to the plan 🔨😎✍️ pic.twitter.com/zjbQBzvYMy
Altcoins outperform Bitcoin during altseason
As of this writing, Bitcoin Dominance is at approximately 56%, dropping from a peak of 61.53%, according to TradingView. This drop happens as some altcoins outperform BTC in different time frames. For example, as observed when analyzed against the following six altcoins:
Data Finbold retrieved from TradingView shows XRP, Solana (SOL), Cardano (ADA), Algorand (ALGO), Near (NEAR), and MultiversX (EGLD) against Bitcoin. In particular, these altcoins saw gains of 318%, 77%, 242%, 255%, 74%, and 89% in the last three months, respectively.
On the other hand, BTC had a shy 68.26% gain in the same period, demonstrating what is further expected.
Interestingly, most analysts believe this is just the start of “the mother of all bull markets” and “the biggest crypto bull run ever,” which is expected to massively favor “utility altcoins” as the “easiest and surest” investment plays for 2025.
If history repeats, cryptocurrency investors will see money rotating from Bitcoin to large-caps, then mid-caps, and then small-caps over time.
The rotation has already started, with coins in the top 50 benefiting the most, as shown with the triple-digit gains. Now, experts await the continuation of this trend, with significant inflows to the top 100 and deeper into small-caps.
Featured image from Shutterstock.
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