Despite the double-digit price drops recorded by some major cryptos in the past seven days, the altcoin forecasts by macro economist, trader and veteran crypto analyst Henrik Zeberg are bullish.
Trading legend’s altcoin predictions
Bears shouldn’t be too enthusiastic about their “despair,” according to a statement Henrik Zeberg shared with his 108,500 followers on Twitter. There is no major market crash on the menu right now. Instead, we need to prepare ourselves for an “alt season”.
https://twitter.com/HenrikZeberg/status/1649508311794868225
Zeberg thinks “Momentum analysis” is the best indicator for the upcoming “alt season”. Therefore, a real altcoin season may come before the severe market recession that it expects to exacerbate in the medium term.
In the past seven days, 8 out of the top 10 alternative cryptocurrencies by market cap have witnessed double-digit losses. Binance Coin (BNB) was the strongest performing cryptocurrency as its value dropped by only 1.5%. Cardano (ADA) and Polygon (MATIC) suffered the most: they lost 14.1% and 13.8% respectively.
Zeberg is not alone in the ‘altseason’ issue!
Before some of the biggest altcoin seasons in the past, meme coins rallied. In the past weeks, some shady meme cryptos including Pepe (PEPE) and ArbDoge AI (AIDOGE) have made tremendous gains. Some of these cryptos have a lot of red flags: their supply is controlled by whales, and contract holders can be voluntarily blacklisted.
Meanwhile, Zeberg isn’t the only speaker predicting an “alt season”. Altcoin predictions by veteran crypto entrepreneur and investor Arthur Hayes, co-founder of BitMEX, also point to an ‘altseason’.
At the same time, the largest cryptocurrency, Bitcoin (BTC), is outperforming some major altcoins in the long run. In mid-April, its dominance reached almost 50%, the highest level since Q2 2021.
Altcoin predictions: Altseason coming?
In the cryptocurrency world, investors are always on the lookout for the next big trend. The question on everyone’s mind lately is whether there’s an “altseason” on the horizon. Altseason refers to a period in which alternative cryptocurrencies or “altcoins” experience significant price increases, outperforming larger and more established cryptocurrencies such as Bitcoin and Ethereum.
According to CryptoQuant, one of the leading cryptocurrency data and analytics providers, the altseason is likely to be approaching. The company points out that there has been a significant decrease in the spot reserve of medium and large altcoins throughout March. This drop in spot reserve indicates that altcoins interested funds may be accumulating inventory.
Source: CryptoQuantSpot reserve outflow in the same period is not lower than in the past. This is important because historically, when altcoins have experienced a massive spot exit, it has been a leading indicator of an impending price increase. Also, when the spot reserve of altcoins decreases, the price increase becomes more pronounced.
Source: CryptoQuantOf course, there is always a level of uncertainty in the cryptocurrency world. It’s impossible to predict with complete accuracy when or if the altseason will happen. However, the data provided by CryptoQuant is promising and attracts the attention of many investors.
This may be the perfect opportunity, but…
Altcoins have always been an attractive investment option for crypto enthusiasts. Unlike Bitcoin and Ethereum, which have a relatively stable market, altcoins have greater potential for rapid growth. However, they also carry a higher level of risk due to their volatility and lack of widespread adoption. Despite the risks, many investors are turning to altcoins because of their high return potential. If CryptoQuant’s analysis is correct and altseason is indeed on the horizon, it could be an excellent opportunity for those looking to diversify their portfolio.
In conclusion, the question is: is altseason coming? The answer is that it is a possibility, based on data provided by CryptoQuant. However, as with any investment, it’s crucial to do your own research and make an informed decision based on your risk tolerance and investment goals. The world of cryptocurrencies is constantly evolving, and it is up to each investor to be informed and make the best decisions for their portfolio.
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