Markets
Analysts predict imminent Altseson, but history suggests one last flush
During the last market cycle, altcoin and Bitcoin pairs capitulated in June 2019, just before the US Federal Reserve cut interest rates.
The chart pattern of this cycle is identical, and if history rhymes, a similar final exit from altcoins could be imminent before this month’s Fed rate decision on June 12.
However, crypto and stock markets fell late last week on US jobs data, which could also mean the Fed will leave rates alone.
Soon a new season… or not?
Nevertheless, analysts still predict that other season is just around the corner. On June 8, crypto analyst “Moustache” compared the last market cycle with the current one, noting the structural similarities and commenting that history does not repeat itself, but rhymes.
Michaël van de Poppe, co-founder of MN Trading commented on the recent market correction in an article on X on June 8, adding that he “expected a bullish breakout in the coming week” and was “still happily positioned” in altcoins.
Meanwhile, “Mister Crypto” told his 120,000 X followers on June 8 that the Bitcoin season seemed “at its lowest point” and that a new season could begin soon.
Industry observer ‘Viktor’ sharing a similar chart on »
Bitcoin’s market dominance is a strong indicator of an impending altcoin rally. It is currently 55.2% after having climbed almost 8% since the start of the year, according to at TradingView.
However, Bitcoin dominance needs to drop below 50% before any hope of a new season can truly materialize and that doesn’t look like it will happen for a while yet.
Altcoins remain bearish
Many have looked at Ethereum as it usually leads any altcoin rally. However, ETH has also retreated over the past few days, falling 3.3% over the past week, falling to $3,680 in early trading on June 9.
Altcoins are in no more pain right now, with a sea of red across the board this weekend and heavier losses for Toncoin (TON), Shiba Inu (SHIB), and Near Protocol (NEAR).
If the Fed leaves interest rates between 5.25% and 5.50% next week, cryptocurrency markets, particularly altcoins, could experience more volatility and struggles before realizing significant gains.