The altcoin market appears to be on the brink of a significant rally as analysts examine trends in the Relative Strength Index (RSI), pointing towards a possible surge reminiscent of the massive bull run seen in 2017. Crypto analyst Moustache has highlighted current trends in the altcoin market, drawing parallels with patterns observed back in 2016 and 2017. During the 2017 bull run, the altcoin market cap skyrocketed from a modest $240 million to an impressive $85 billion. With the present market cap standing at around $827 billion, Moustache speculates that a similar trajectory could see the altcoin market rise to somewhere between $1.8 trillion and $2.2 trillion.
Analyzing the 3-Week RSI Chart
The focal point of Moustache’s analysis is the 3-week RSI chart, which is currently in a downtrend. The RSI, often used by traders to measure the speed and change of price movements, is a key indicator of market momentum. According to Moustache, if the RSI breaks out from this downtrend, it could herald the beginning of a substantial rally for altcoins, producing opportunities akin to those in the latter part of 2017. This insight is crucial for investors looking to capitalize on potential market shifts.
Crypto analyst Michael van de Poppe adds another layer to this analysis by pointing out a potential bullish divergence on the Others/BTC chart. A bullish divergence happens when an asset’s price makes a new low, but the RSI does not follow suit. This divergence typically signals that the selling pressure is decreasing, suggesting that the market may be nearing a bottom. Should this scenario unfold, van de Poppe believes it would open the door to considerable price upticks for altcoins, providing a much-needed boost for investors.
The Delay of “Altcoin Season”
Recent market behavior has deviated from expected patterns, particularly concerning the timing of the anticipated “altcoin season.” This period, typically characterized by significant growth for altcoins, commonly follows Bitcoin’s halving events. Historically, these cycles have been relatively predictable, making the current delay a puzzling development for many crypto experts. The absence of the anticipated surge has led to a variety of theories and speculations about underlying market dynamics that could be at play.
This delay has left analysts cautiously optimistic, as technical indicators and historical patterns suggest that a substantial rally may still be on the horizon. Market indicators such as the RSI trends and the bullish divergence noted by van de Poppe support this view, pointing towards waning selling pressure and a potential bottoming out of the market. Investors are closely monitoring these trends, looking for signs that could corroborate the beginning of a new rally.
Historical Parallels and Present-Day Metrics
The altcoin market seems poised for a significant rally as analysts scrutinize trends in the Relative Strength Index (RSI), suggesting a potential surge reminiscent of the enormous bull run in 2017. Crypto analyst Moustache has recently highlighted present trends in the altcoin market, drawing comparisons with patterns observed back in 2016 and 2017. During the 2017 bull run, the altcoin market cap experienced a dramatic increase, skyrocketing from a modest $240 million to an astounding $85 billion. Currently, the altcoin market cap stands at around $827 billion. Moustache speculates that if conditions mimic those of the past, we could see the market cap soar to possibly between $1.8 trillion and $2.2 trillion. This projection is based on the belief that historical patterns may repeat themselves, underlined by similar RSI indications. Should these predictions hold true, it could translate to substantial gains for investors in the altcoin market, potentially ushering in a new era of crypto wealth.
