Analyst: ‘Altcoin-Season’ Imminent As Extreme Greed Grips The Market

By Aaron Feuerstein March 01, 2024 In Altcoins, Bitcoin, ETFs
  • Amid global all-time highs for Bitcoin and record inflows into Spot Bitcoin ETFs, altcoins are gaining attention.
  • Market intelligence suggests a shift with an increase in total crypto market capitalisation and a doubling in trading volume.
  • This may be an indication of the start of an altcoin redistribution despite institutional focus on Bitcoin ETFs limiting direct BTC to Altcoin conversions.
  • Seasoned investors and those profiting from Bitcoin are anticipated to diversify into altcoins, potentially leading to significant altcoin growth.

Amid Bitcoin hitting all-time highs around the worldalbeit not yet in US dollars—Spot Bitcoin ETFs reaching record after record in inflows and volume, and meme coins (especially the one with hats, for some reason) seeing a revival, you might be thinking: so, what about altcoins?

Some in the crypto-world have expressed concerns that this time things could play out a bit different. Usually, as the bull market frolics on, money rotates from Bitcoin into altcoins.

Given the significant interest from institutional investors, which is predominantly directed towards Bitcoin ETFs, individual investors are limited in their ability to directly sell BTC in exchange for altcoins, even those featuring animals wearing hats (it’s the latest trend apparently, don’t ask me).

Related: PEPE Skyrockets by Over 115%: The Return of the Memecoins?


Altseason Is Upon Us—Maybe

According to the sleuths from market intelligence platform Santiment, the redistribution of altcoins is underway, contributing to a 12.1% increase in the total crypto market capitalisation over the last week, based on data from 2,862 assets.

Moreover, they say trading volume has seen a significant surge, more than doubling from the previous week.

Social volume & price percentage changes, source: Santiment

Market analyst Michaël van de Poppe said he agrees that the altcoin market cap is slowly inching in the right direction. Because, while it’s true that those pouring money into Spot ETFs have no way of converting BTC to alts, they are also just entering the market.

There are of course many investors who have either held Bitcoin for a while (possibly the 2021 top buyers) or have DCA’ed into BTC in the past ~2 years. These people are likely to take profits at some stage.

Van de Poppe of course suggests that these gains from Bitcoin could be used or leveraged to invest in altcoins, anticipating that altcoins might offer better returns or growth potential in the near future.

Therefore, Ethereum to $4,500-5,000 is likely, while altcoins will accelerate with 2-4x returns.

Michaël van de Poppe
Crypto total market cap ex. BTC and ETH, source: TradingView/ Michaël van de Poppe

Over To You Bitcoin: Correction Soon?

Meanwhile, those not overly interested in alts may shift their focus back to Bitcoin, because analyst Ali (ali_charts) believes a correction may be on the cards.

Related: U.S. Financial Giants Embrace Spot Bitcoin ETFs, as Brazil Welcomes IBIT

Ali opined that the TD Sequential indicator has been a reliable tool for predicting short-term price corrections in Bitcoin. According to his chart, every sell signal from the TD Sequential on the Bitcoin 4-hour chart since February 15 has been accurate, leading to price corrections ranging from 1.50% to 4.20%.

Source: TradingView/ @ali_charts

This pattern suggests that traders who are focused on short-term movements in the Bitcoin market might find it beneficial to pay attention to the sell signals from this indicator, as it could inform their trading strategies and potentially help them make better-informed decisions regarding entering or exiting positions.

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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