As Bitcoin bulls and bears slug it out around the $9,000 price area, a handful of widely-followed analysts say they believe that an altcoin season may be on the horizon.
In a recent tweet, crypto strategist Crypto Ed NL tells his 92,000 followers that while he’s been bearish on altcoins since the fourth quarter of 2019, he is now changing his stance.
“Okay guys I’ve been annoying you all since October saying ‘no altseason’ yet but… This is how an altseason starts. Ready to rumble?”
Pseudonymous trader DonAlt is on the same page. The crypto analyst paints two favorable scenarios for altcoins depending on how Bitcoin trades.
“Let’s say BTC goes on a run -> alt/usd [pairs] bottom is probably in. Let’s say BTC goes down -> alt/btc [pairs] bottom is very near. Alts went down 99%, I wouldn’t be surprised if they retraced up to 50% of that.”
Technical analyst Rekt Capital echoes DonAlt’s sentiments. The trader says that Bitcoin’s halving hype is over and that altcoins are carving a local bottom.
Immediate Bitcoin Halving hype has died down ?
Altcoins have reached their local bottoms ? #cryptocurrency $BTC $ALTS pic.twitter.com/EjeWwzZiJp
— Rekt Capital (@rektcapital) May 22, 2020
While other analysts see altcoins bottoming out, trader Galaxy believes that altseason is already in progress.
??????????????? 5% pic.twitter.com/CXYMLDhkAD
— Galaxy (@galaxyBTC) May 22, 2020
Last year, between February and June, many altcoins spearheaded by Litecoin and Ethereum went on a rampage. During this period, Bitcoin surged from $4,000 to nearly $14,000.
Trying to time the altcoin market is a notoriously dangerous endeavor, and many coins have been pummeled more than 90% from their all-time highs. As crypto strategist Jacob Canfield notes, altcoins typically fall by the wayside when Bitcoin is pumping. In addition, when Bitcoin drops, altcoins tend to take a beating.
“I would recommend and advise anybody trading: wait for a reversal confirmation. Don’t try and catch these knives all the way down. Just wait for Bitcoin to find some stability…. Because Bitcoin pumps, altcoins die. Bitcoin drops, altcoins die some more… Just wait for confirmation, and what I mean by confirmation is wait for a higher high and a higher low.”