The Upcoming Altcoin Season: Strategies for Q1’s Hype Cycle

The post The Upcoming Altcoin Season: Strategies for Q1’s Hype Cycle appeared first on Coinpedia Fintech News

A prominent crypto analyst suggests that a Q1 hype cycle could be on the horizon for altcoins. Could this be the start of a major surge? Talking about the importance of timing, the analyst pointed out the pattern of low hype preceding periods of high hype, presenting opportunities for investors. Here’s what it means for you. 

Timing and Low Hype Patterns in the Q1 Hype Cycle

In a recent chart shared on X, Rekt Capital suggests that altcoins typically undergo a Q1 hype cycle every three months. According to the analysis, the least excitement about altcoins generally happens during a Q1 Hype Cycle from January to April. Excitement is expected to rise to start in mid-February and reach its highest point around the start of April.

Pre-Halving Rally?

His analysis ties into the imminent halving event in April, historically associated with booms in both Bitcoin and altcoin prices. That also includes the possibility of a reaccumulation phase in the coming weeks ahead, making it the right time for a rally as the halving approaches in 77 days.

Call for a Buying Opportunity, Watch out for Altcoins   

Rekt Capital’s analysis hints at a potential Q1 hype cycle for altcoins, aligning with historical market patterns. Hence, the next two weeks are the only chance to buy Bitcoin at discounted prices. Where Bitcoin stands for a critical long-term resistance level. The chart suggests that BTC is currently battling with a long-term diagonal resistance line, indicating that overcoming this resistance may require several attempts. Bitcoin is currently trading at $43,100, a crucial zone that came after weeks of stagnation.

However, the focus in Q1 will be on altcoins like Ethereum and Avalanche, presenting trading opportunities, but stay vigilant on potential price fluctuations. He picked Ethereum (ETH) and Avalanche (AVAX) for a surprising boom in the hype cycle. For AVAX, he sees potential support near the $35 level. Despite the recent downturn, AVAX is highlighted for successfully retesting its Macro Downtrend as new support.

Entry of Short-term Traders

Additionally, the analysis suggested that these altcoins might experience a reaccumulation range following the pre-halving retrace. This could favor altcoins, allowing money to flow into the market despite potential downturns. During this period, the entry of short-term traders and speculators adds fuel to the hype, creating an atmosphere charged with anticipation.