Altcoins have taken a nosedive following the flagship cryptocurrency, Bitcoin’s move to the downside. However, based on a recent revelation by this crypto analyst, there is reason to believe that the general outlook in the crypto market might soon change.
Altcoins About To Make A Move Of Their Own
Crypto analyst Crypto Prof, mentioned in an X (formerly Twitter) post that Altcoins were “on the verge of a golden cross.” Elaborating on the significance of this event, he noted that it happened in 2016 and 2020, right before the bull run began. The analyst then went on to raise the possibility of this happening again this year.
That doesn’t seem farfetched, considering that history tends to repeat itself often in the crypto market. The bullish pattern forming in 2016 and 2020 suggests that it could be a market cycle that occurs every four years. Crypto Prof seemed optimistic that things were going to begin looking up for the altcoin market soon enough, as he stated that “there are bullish signals everywhere.”
The golden cross being imminent is undoubtedly one of those bullish signals, suggesting that altcoins will experience a major rally soon enough. When that happens, it will usher in what is known as the ‘altcoin season,’ when these crypto tokens begin to outperform Bitcoin.
In a subsequent X post, Crypto Prof provided a further analysis to back up his claim that a major rally was on the horizon. Looking at the altcoin chart, he noted that resistance had become support, suggesting that the sentiment was changing from bearish to bullish.
Meanwhile, the price of the altcoin market is said to be above the weekly 200 moving average (MA), with this indicator being at the same level as the support zone.
Narratives That Confirm The Imminent Altcoin Season
Crypto Prof also provided two narratives that suggest that the altcoin season was around the corner. The first, which he highlighted, was the news that the pending Spot Ethereum ETF applications could be approved in May. NewsBTC had reported about Standard Chartered’s prediction that the SEC would approve these funds by May 23.
News like this one present a bullish narrative for ETH in particular, which is known to lead the charge, considering it is the second largest crypto token by market cap. Moreover, ETH is expected to enjoy significant price gains like what happened to Bitcoin on the back of the Spot Bitcoin ETF approval rumors.
Meanwhile, the second narrative the analyst mentioned was the one about how Tether recently increased the USDT supply. This happens to be a positive development as it suggests that more users are entering into the crypto space, with some of this liquidity expected to flow into altcoins.
Altcoin market cap hold above $740 billion | Source: Crypto Total Market Cap Excluding BTC on Tradingview.com
Featured image from Kanalcoin, chart from Tradingview.com