Analysts Forecast Altcoins to Surge in Early 2025
Analysts forecast a bullish trend for Altcoins in 2025, anticipating the start of "Altseason" following a retest of key support levels.
Altcoins Retest Key Support Level
Recent market performance shows many Altcoins struggling to gain traction. Analysts predict a rebound starting January 2025. Following a post-US election surge, total crypto market capitalization, excluding Bitcoin and Ethereum, broke a three-year downtrend in mid-November, exceeding $788 billion. This rally peaked at $1.1 trillion, the highest since 2021.
However, Altcoins have faced a nearly 26% decline over the past two weeks as Bitcoin fell below $100,000 but remains above critical levels. Analyst Crypto Jelle noted that the sector has broken out and retested its major trendline while resetting leverage. He expressed optimism for 2025, citing low sentiment and promising chart patterns.
The price action of Altcoins mirrors Bitcoin's early 2021 pullback, characterized by a strong rally followed by a correction before new highs. Analysts suggest that if this pattern continues, Altcoins should begin to rise again soon. Michaël van de Poppe indicated that the correction is nearing its end, predicting upward momentum for both Altcoins and Bitcoin.
Altseason To Follow 2021’s Playbook?
Titan of Crypto stated that Altcoins are poised for significant gains, suggesting a forthcoming "grand finale." His analysis shows that Altcoins have formed a two-year cup and handle pattern, recently breaking its upper line during market highs. Excluding Ethereum, this could lead to a 200% increase in market capitalization, potentially reaching $1.4 trillion and surpassing 2021’s peak of $1.13 trillion.
Historically, Altcoins saw a similar breakout in November 2020, followed by a notable 30% drop in early December and a four-week recovery, culminating in a 143% increase in January 2021. Currently, Altcoins have experienced a 26% drop in December, entering the third week of an anticipated four-week recovery. Analysts expect early January to signal the beginning of an upward trend.
Furthermore, Titan of Crypto noted that previous cycles indicate initial Altcoin rallies lasted between 140 and 175 days. Based on historical patterns, this cycle might reach new highs around April or May, with a potential first pump in Q2 2025 and a peak in Q4.
