The crypto industry has experienced a positive shift with the recent market recovery. Following a bullish Q1, Q2 brought about a wave of pessimism towards altcoins. However, experts and market analysts have reassured investors that the price corrections were a natural part of the cycle, predicting that the bullish rally would resume after this period of cooling off. Analysts now believe that altcoins are poised for a "massive leg higher" as the alt season approaches.
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The crypto market has risen by 8.3%, reaching a market capitalization of $2.55 trillion. This surge has seen Bitcoin, the leading cryptocurrency, exceed $70,000 in the past day. Similarly, Ethereum (ETH), often referred to as the "king of altcoins," has seen a significant increase. ETH's price has surged by 22% since yesterday, reaching levels not seen since mid-March.
Despite this, ETH has yet to challenge its all-time high (ATH) of $4,878, set nearly two years ago. Consequently, the second-largest cryptocurrency has faced criticism this cycle for being "a major disappointment."
In a surprising turn of events, rumors of the approval of ETH spot Exchange-Traded Funds (ETFs) have reignited investor enthusiasm, "erasing 65 days of downward movement" with a single daily candle. As ETH continues to rally, analysts believe it's only a matter of time before the entire altcoin sector begins to surge, marking the start of the altcoin season.
Crypto analyst Rekt Capital emphasized the 'Crypto Money Flow Cycle', suggesting that now that BTC and ETH have rallied, "it's time for altcoins to rally."
Read more: BlackRock Predicts Bitcoin ETF Explosion
Are Altcoins Ready to Shine Amid Market Slowdowns?
During the market slowdowns, analysts have closely examined the performance of altcoins this cycle. Altcoin Sherpa noted that many tokens did not "run that hard" during the first round of the bull run, predicting a 1-4 month "cool-off" period before resuming the uptrend.
Despite the similarities with previous bull runs, unique factors in this cycle, such as the approval of Spot Bitcoin ETFs and the Memecoin pre-sale frenzy, have led investors to question the likelihood of seeing an alt season this time. However, several analysts who previously advised against panicking now suggest the community brace for the "maniac phase" ahead.
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Crypto Yoddha shared his chart for the 2024 altcoin cycle, stating that the recent dip was "just a higher low in an uptrend." According to his chart, the altcoin market is now set to retest the $1.27 trillion resistance level seen in March before aiming for the $1.7 trillion all-time high from the last cycle.
Source: @CryptoYoddha on X
To Crypto Yoddha, this indicates "a bullish continuation" that will lead to a new market ATH during the second round of the bull run. Similarly, top analyst Michaël van de Poppe, who recently exchanged all his BTC for altcoins, asserted that the altcoin market capitalization has completed its correction.
Van de Poppe predicts the next step is reaching the all-time high, which is about 60-70% above current levels. He believes Ethereum is likely to achieve this within the next 2-4 months.
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Additionally, Crypto Jelle suggests that "altcoins are about to embark on a massive leg higher" after an 18-month accumulation period. The analyst compared the market's recent breakout to a ball being held underwater, asserting that "it's time for history to repeat."
See more: Cryptocurrency Prices and Market Cap
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