A closely followed crypto analyst says that altcoins could be entering into what he describes as a “hype cycle” phase to start the new year.
Pseudonymous analyst Rekt Capital shares with his 392,000 followers on the social media platform X a chart suggesting that altcoins go through cycles of hype that peak roughly every three months.
According to the trader, altcoin hype should rise sometime in mid-February and peak around the beginning of April.
“Altcoins may slowly be preparing for a Q1 Hype Cycle
Periods of lowest hype correspond to periods of lowest prices
Typically, lowest hype towards Altcoins for a Q1 Hype Cycle is between January and April.”
Zooming in on specific altcoins, Rekt Capital looks at Ethereum (ETH) Avalanche (AVAX). According to him, AVAX is potentially forming support near the $35 level.
“AVAX
Avalanche continues to successfully retest its Macro Downtrend as new support, despite whatever downside volatility has occurred below it.”
On the other hand, Rekt Capital says that Bitcoin may be at a critical long-term resistance. His chart suggests that BTC is brushing up against a long-term diagonal resistance line, which may take a few attempts to get past if history is any indicator.
“Bitcoin has reversed straight back into the Macro Diagonal resistance.”
At time of writing, Bitcoin is trading at $43,100.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Featured Image: Shutterstock/3000ad/Alexxxey