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Heading into the new year, some analysts are predicting that 2025 will be “very bullish” for altcoins. The sector is expected to explode soon and begin the long-awaited “Altseason” after retesting the key support level.
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Altcoins are retesting a key support level
Amid the recent market performance, many altcoins have struggled to post significant gains. However, many market observers expect the altcoin to launch in January 2025.
Buoyed by a post-US election pump, the total market capitalization of cryptocurrencies, excluding Bitcoin and Ethereum, broke into a three-year downtrend in mid-November, surpassing its annual high of $788 billion. During this month’s rally, the sector rose to $1.1 trillion, its highest market value since 2021.
Since then, altcoins have struggled over the past two weeks, falling nearly 26% as Bitcoin lost the $100,000 mark but remains above the key level despite the recent performance.
Crypto Jelle noted that the sector broke out and retested its “major trend line while destroying all leverage in the process.” Funding has been “completely reset,” sentiment is at rock bottom, and the chart looks promising, the analyst highlighted, adding that he is “very optimistic for 2025.”
He also noted that the altcoin’s price action is “very similar” to the first major currency Bitcoin withdrawal For 2021. According to the chart, the major cryptocurrency saw “a strong rally, a pullback, a lower high, and a drop below the first low” before breaking new highs.
Based on this performance, it appears that the altcoin decline is over, and they should start to pull back soon if the situation continues as it is. Likewise, Michael van de Poppe male“The correction is almost over, and only bullish time is on the horizon for altcoins and Bitcoin. We expect a lot more to come.”
Will the Altseason follow the 2021 playing rules?
Titan encryption He confirmed Altcoins are set to explode soon, signaling that “the grand finale is just around the corner.” According to the analyst’s chart, altcoins have been in a cup and handle pattern for two years, breaking out of the pattern’s upper line during the recent market highs.
Depending on the pattern, altcoins, excluding ETH, could see a 200% increase to a market cap of $1.4 trillion, surpassing the 2021 high of $1.13 trillion. The analyst also noted that before its rally in 2021, the sector had seen a similar performance.
In 2020, altcoins emerged in November and saw a massive 30% drop in early December, followed by a four-week rebound. They then posted a 143% rally in January 2021, triggering another green candlestick every three months before the first major correction.
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Likewise, it saw a 26% decline in December this year, and is currently in the third week of an expected four-week recovery period. For the analyst, “early January may mark the beginning of the ‘only up’ season.”
And finally, the crypto giant He added Over the last two cycles, the initial altcoin rally lasted between 140 and 175 days, suggesting that the rally of this cycle may reach a new high around April or May. If it follows the performance of past cycles, it could see its first pump in the second quarter of 2025 before peaking in the fourth quarter.
Featured image from Unsplash.com, chart from TradingView.com