A closely followed crypto strategist is predicting when trading in the altcoin market could begin to surge.
Pseudonymous analyst Altcoin Sherpa tells his 196,600 followers on the social media platform X that an altseason is likely coming within months.
“Either way, I’m eyeing December/January as another strong period for altcoins and you should too. Strap up.”
“ETH: The time is coming soon to scale into altcoins. I expect an extremely explosive Q4 or early Q1, as it always happens. These are arguably the best times of the year to trade. Watch for .055 BTC area and then I expect Ethereum to bounce hard with ETH/BTC.”
ETH/BTC is treading for 0.058 BTC ($1,613) at time of writing.
According to the trader, Bitcoin has historically performed well during the months of December and January.
“December and January are some of the absolute best times of the year to trade/buy crypto. BTC nearly always does well (even in bear markets) and ETH outperforms. Altseasons are born during these times.”
The trader is also closely watching the Bitcoin dominance (BTC.D) chart, which tracks how much of the total crypto market cap belongs to BTC.
“BTC.D: Bitcoin dominance is BTC share of the overall market cap. When BTC.D goes DOWN, this means that alt value is going UP (alt/BTC pairs) aka altcoins are outperforming. If you have alts, you like to see this. 2022 was different though.”
According to the trader, the altseason could last for weeks.
“So, altcoins usually have some sort of run in December or January the following year. Why is this? I don’t really know the mechanisms behind it. But seasonality is very cyclical in crypto. We should have two-six weeks of really good times IMO (in my opinion).”
The trader predicts Bitcoin will see price volatility during an altseason.
“What it would require BTC to do during this time? Probably either range or grind up. You rarely see alts taking off if BTC is the star of the show. Something like this might make sense.”
Looking at his chart, the trader seems to think Bitcoin will rally to cross $29,000 this month, dip down to retest the $25,000 range in mid-November, soar to the $32,000 range in December and then re-test the $30,000 level.
Bitcoin is trading for $27,454 at time of writing, down 1% in the last 24 hours.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney