With the new year on the horizon, analysts are predicting a very bullish 2025 for Altcoins. The sector is expected to experience a surge and kickstart the much-awaited “Altseason” after retesting a crucial support level.
Altcoins have faced challenges in terms of significant gains amidst recent market performance. However, many market observers anticipate the beginning of the altcoin season as early as January 2025. Following the post-US election pump, the total crypto market capitalization, excluding Bitcoin and Ethereum, broke out of a three-year downtrend in mid-November, surpassing its yearly high of $788 billion. The sector reached $1.1 trillion during this rally, marking its highest market cap since 2021.
Despite a 26% drop in the last two weeks and Bitcoin losing the $100,000 mark, Altcoins are holding above a crucial level. Crypto analyst Crypto Jelle noted that the sector broke out and retested its major trendline, resetting all leverage and sentiment in the process. With a promising chart, he expressed a very bullish outlook for 2025.
Comparing Altcoins’ price action to Bitcoin’s first major pullback of 2021, analysts suggest that the pullback phase for Altcoins is likely over. They anticipate a push back up soon, with expectations of positive momentum for Altcoins and Bitcoin in the near future.
Looking ahead, Titan of Crypto predicts that Altcoins are on the verge of exploding, indicating that the grand finale is near. Analyzing a two-year cup and handle pattern, Altcoins broke out of the pattern’s upper line during recent market highs. The analyst forecasts a potential 200% surge in market capitalization to $1.4 trillion, surpassing the 2021 high of $1.13 trillion. Drawing parallels to the 2020 performance, Altcoins could see significant growth following a recovery period, similar to the rally in January 2021.
Moreover, historical data suggests that Altcoins’ initial rally typically lasts between 140 and 175 days. If this pattern continues, the current cycle could witness a new high around April or May, with a peak expected in Q4. The latest cycle may see a similar trajectory to previous cycles, with a potential uptrend in Q2 2025 before reaching its peak.
Overall, market analysts are optimistic about Altcoins’ prospects in 2025, with expectations of a bullish trend and a potential Altseason on the horizon. As the new year approaches, investors will closely monitor market developments to capitalize on potential opportunities in the Altcoin sector.
Sources: NewsBTC, TradingView