Altcoins Ahead of Alt Season: Could History Repeat?

Altcoins Ahead of Alt Season: Could History Repeat?

Predictions based on historical patterns suggest that an upcoming period of significant altcoin growth, the so-called altseason, may be on the horizon. While recent weeks have brought sharp declines and market jitters, past experience shows that these deep resets have often preceded the most significant rallies.

Historical Patterns and Big Drops as a Signal for a Comeback

Crypto analysts have identified recurring patterns in market cycles that show that big drops – sometimes as much as 70% – often precede subsequent massive altcoin gains. For example, in March 2020, due to the pandemic and crisis events, the market wiped out almost 70%. Similarly, in May 2021, when the drop exceeded 50%, the market was going through a period of uncertainty.

Even during the last bull cycle, we have witnessed several significant declines, which, according to analysts, were only “resets” before further strong increases. “Every major decline in the past ended with a subsequent strong rally, which often moved altcoins by tens or even hundreds of percent,” says an analyst from Bull Theory.

Rises after resets: What to expect this year?

Sharp declines in the past have often been followed by massive growth in altcoins. For example, the flash crash in March 2020 was followed by “altseason 3.0”, when some altcoins rose by up to 100 times. Although the current situation looks tense, analysts believe that similar scenarios are still possible.

Significant declines over the weekend

In recent days, some major altcoins have recorded significant declines. XRP fell 18%, Solana 22%, Dogecoin 28%, Cardano 25%, and Chainlink 26% in just one day. These losses, experts say, are typical before a big rally.

According to analyst Ash Crypto, citing historical experience, the flash crashes of 2020 were followed by a massive altseason, with some altcoins rising 25-100 times. “I think it can happen again,” he says.

Charts and patterns suggest history repeating itself

Another analyst, Merlijn The Trader, points to technical patterns on the charts that match previous cycles from 2017 and 2021. The monthly bullish MACD cross on the BTC/altcoin chart suggests that the market may soon enter another period of growth.

Market Cap and Bitcoin Dominance

Despite the current dip below the psychological $4 trillion mark in total cryptocurrency capitalization, there are signs that the market is preparing for further growth. While Bitcoin fell 1.4% to $111,826 on Tuesday, its market dominance has slipped below 59%, marking the first weekly red candle in five weeks and suggesting that altcoins may soon gain momentum.

Conclusion: What lies ahead?

While the current market situation points to uncertainty and deep dips, history and technical patterns suggest that we may be on the cusp of another major altcoin bull run. If similar patterns hold true again, we could be in for a period of significant growth that could significantly outweigh the current losses.

So, while markets are still jittery, it’s worth keeping an eye not only on the Bitcoin price, but also on technical signals and patterns that could signal the start of a new altseason. And as history shows, after every storm comes a period of growth – and maybe this is the right time to prepare for the next big rally.

*This is not an investment recommendation.

The Coingarage Team