As we approach the new year, market analysts are increasingly optimistic about the future of Altcoins. With predictions of a “very bullish” 2025, the Altcoin sector is anticipated to undergo a significant transformation, potentially leading to the much-anticipated “Altseason” after revisiting a crucial support level.
Altcoins Retest Key Support Level
In recent market movements, Altcoins have been battling to achieve notable gains. Despite this, several analysts have projected a promising start for Altcoins as early as January 2025. This optimism is largely fueled by the post-US election market surge, which saw the total crypto market capitalization—excluding Bitcoin and Ethereum—break free from a three-year downtrend in mid-November. At this point, it exceeded its annual peak of $788 billion and soared to an impressive $1.1 trillion, marking its highest market cap since 2021.
Despite this rally, Altcoins have faced challenges over the past two weeks, experiencing a 26% decline as Bitcoin fell below the $100,000 mark, yet they remain above a crucial level. Market analyst Crypto Jelle noted that the sector has broken out and retested its “major trendline,” effectively eliminating all leverage in the process. The analyst emphasized that funding has been “completely reset,” sentiment is at a low, and the chart appears promising, leading to a “very bullish” outlook for 2025.
Additionally, Crypto Jelle observed that Altcoins’ price movement is “very similar” to Bitcoin’s initial significant correction in 2021. According to the chart, Bitcoin experienced a “strong rally, pullback, lower high, and chopping below the first low” before ascending to new heights. Based on this pattern, the Altcoins’ pullback appears to be concluding, and they “should start pushing back up soon if this trend continues.” Similarly, Michaël van de Poppe remarked, “The correction is nearly complete, and a period of upward movement is on the horizon for both Altcoins and Bitcoin. A lot is expected to unfold.”
Altseason To Follow 2021’s Playbook?
The renowned analyst Titan of Crypto has also predicted that Altcoins are on the verge of a breakout, suggesting that “the grand finale is near.” According to his analysis, Altcoins have formed a two-year cup and handle pattern, recently breaking through the pattern’s upper boundary during market highs.
This pattern indicates that Altcoins, excluding Ethereum, could potentially experience a 200% increase in market capitalization, reaching $1.4 trillion and surpassing the 2021 high of $1.13 trillion. The analyst also highlighted that before the 2021 rally, the sector displayed a similar performance.
In November 2020, Altcoins experienced a breakout followed by a significant 30% drop in early December, succeeded by a four-week recovery period. This was followed by a remarkable 143% surge in January 2021, leading to three consecutive months of green candles before the first major retracement.
Currently, Altcoins’ year-end price action closely mirrors the performance seen in late 2020. According to Titan of Crypto, “Early January could mark the beginning of an ‘up only’ season.”
Furthermore, Titan of Crypto noted that in previous cycles, Altcoins’ initial rallies lasted between 140 and 175 days. This suggests that the current cycle could reach its peak around April or May, with a potential initial surge in Q2 2025 before culminating in Q4.
The total crypto market capitalization, excluding Bitcoin, currently stands at $1.32 trillion, indicating a promising outlook for the Altcoin market in the coming months.
