Most major altcoins have seen strong gains this week on the back of Bitcoin’s rally past the key $40,000 level. Coins like ADA, SOL, AVAX, DOGE, and DOT are up between 20-56% over the last week, outpacing Bitcoin’s 15% gain in the same period.
As Bitcoin broke above $40k in early December and now trades around $44k, it seems altcoins are following its lead, as they often do when overall crypto market sentiment turns positive. According to influential crypto analyst Mr. Moustache, who has over 80,000 followers on X:
“This is probably the biggest signal for Altcoins. The blue line in the RSI has now been broken to the upside. The last time this happened was in 2016, after which we saw the biggest bull run for Altcoins to date. A VERY large inflow of capital is coming imo.”
Here Mr. Moustache is referring to the Relative Strength Index, a technical indicator that measures the momentum and velocity of price changes. His view is that the current RSI breakout suggests a major new altcoin cycle, comparable to late 2016 when many alts saw 10x-100x gains after Bitcoin’s halving earlier that year.
Similarly, popular analyst Michaël van de Poppe, with 670,000 followers, tweeted today:
“Pretty clear that 3-8 months before the #Bitcoin halving is the best time to invest into #Altcoins. That period is now and it looks like we’ve got ourselves into a short-term top on the Bitcoin dominance. Time to swap to $ETH.”
Van de Poppe believes we are now entering the start of altcoin season, given we are 5 months away from Bitcoin’s next halving event. He suggests rotating from Bitcoin into altcoins, particularly Ethereum, to capitalize on this pre-halving period which has historically been strong for alts.
With crypto leaders predicting an impending altcoin boom, many traders appear to be shifting capital into smaller cap digital assets to ride any wave higher. The weeks ahead will determine if such bullish calls prove prescient or premature. Yet for now, market momentum lies firmly with the alternative crowd.
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