While Bitcoin‘s price has been moving sideways, this period of low volatility has been a boon for altcoin investors, with many cryptocurrencies reaching new yearly highs. Double-digit gains have accelerated over the weekend and continue to rise. This prompts the question: could this be the start of an altcoin bull season? Three key signals suggest a positive trend.
Investors, who have faced significant losses for over 1.5 years and have weathered 167 major events this year alone, believe the time for a turnaround has come. After a peak of $1.71 trillion in November 2021, the total value of altcoins plummeted to $427 billion by June 2022. However, from mid-2022 to November 2023, altcoins entered a long-term accumulation phase, struggling to break through the tough resistance level of $657 billion.
The first major signal emerged in November when a breakout was confirmed, and charts began to form a long-term bullish structure, indicating higher lows and highs. The altcoin bull season appears to have started about a month ago, and the question now is when it will end.
Another signal confirming the current or impending altcoin bull season is the fractal structure of the TOTAL2 chart (representing the cumulative value of altcoins), as published by @el_crypto_prof. This pattern has previously triggered major rallies in 2016 and 2020, suggesting the potential for a continued rise to $942 billion.
Adding to the excitement is another indicator from the Altcoin Season Index, which tracks the performance of altcoins against Bitcoin in monthly, quarterly, and yearly intervals. The quarterly interval hints at an upcoming trend change, which, if it mirrors the movement in 2020, could lead to a strong altcoin rally in 2024.
As a bonus signal, the ETH/BTC chart seems to be nearing the end of a long-term downtrend. If a double bottom scenario plays out and ETH bounces from the 0.052 BTC level, it could quickly target the nearest resistance at 0.085 BTC, potentially signaling the onset of a new wave of altcoin rallies.
