Is the Next Altcoin Season Approaching? Some Traders Think So

Bitcoin Consolidation and Potential Altcoin Season

Bitcoin’s recent consolidation has sparked anticipation of a new altcoin season among traders. The price movement and discussions around it suggest the possibility of an upcoming altcoin season.

Bitcoin’s Price Movement

Before the weekly close on April 28, Bitcoin surged past $64,000, showing a strengthening price trend over the weekend. Currently, Bitcoin is trading around $62,600, while the total altcoin market capitalization has increased by 1%, indicating a positive trend for alternative cryptocurrencies.

Trader Predictions

Trader Moustache predicted a significant altcoin season, potentially rivaling the levels seen during the 2017 all-time highs. Another popular trader, Skew, highlighted that altcoins have bounced back but emphasized the importance of breaking the pattern of setting weekly highs on Mondays and Tuesdays.

Market Analysis

Skew suggested that sell-side pressure might impede Bitcoin’s progress towards its recent highs, with a focus on Tether’s position in the market. The trader noted an inverse relationship between Tether’s value and that of altcoins.

Ethereum’s Role in the Altcoin Season

Ethereum has faced challenges in the past six months, particularly with gas fees soaring. Despite a 10.46% drop in April from its high of $3,722, Ethereum has seen a slight 4.3% increase in the past week.

Market Sentiment and Predictions

Analysts from Santiment suggested that the decline in Ethereum gas fees could signal the onset of an altcoin season. According to Santiment’s data, Ethereum’s average transaction fee has dropped to $1.12, the lowest since October 18th. This reduction in fees could lead to a quicker recovery for Ethereum and other altcoins.