Has ‘altcoin season’ come?

The long-awaited ‘altcoin season’ seems to be coming, but for some coins only, while the BTC quitting out the prolonged flat isn’t yet to come. The largest cryptocurrency keeps its previous long-term goals, 8848 Invest’s analyst Mark Sorokin insists.

The cryptocurrency market situation doesn’t change in principle, so it’s still premature to confirm the ‘altcoin season’ coming for all coins. The key cryptocurrency, BTC, continues to accumulate volume and its volatility has dropped sharply — almost to zero.

‘The key instruments are hardly moved. The market is looking for additional liquidity, leaving prices within the flat to attract at least someone else who would enter positions to buy or sell additional volumes,’ the expert notes.

At the same time, who exactly accumulates positions and in which direction is unknown. Therefore, it’s better to consider both options with the decline and the increase as probable. In general, BTC is expected to quit the accumulation, preferably with a strong impulse and the brand new trend movement.

‘In case of an increase, we can see the mark of $15 100, in case of going down — distribution to the support source in the region of $4 000,’ Mark Sorokin notes.

Altcoins

Alternative digital coins are in a similar situation. They also have extremely low volatility. Altcoins as a whole also form a flat trend, from which the market expects to exit — preferably with impulse sufficient for the new trend movement and ‘distant’ consolidation.

‘ETH is standing still, LTC is also standing. XRP and all other market tools are similar,’ Mark Sorokin says.

At the same time, we can note a group of low-liquid assets, for example, Chainlink (LINK), which are supported by the favorable news background during the last weeks, which allows them to continue growing.

‘I expect to stop growing for these coins in the near future, partial position fixation, and the beginning of the formation of new intermediate accumulation,’ 8848 Invest’s analyst notes.

The VeChain (VET) coin, which can be called the ‘coin of the week’ is in the same situation. Last week there was a lot of news on it, which allowed it to show impressive growth. Later, it was replaced by the correction, and now we can also expect open positions partial fixation and the beginning of the formation of new intermediate accumulation.

The possible ‘altcoin season’ arrival theme was continued at the weekend after the famous technology entrepreneur Elon Musk twitted that he believed to ‘inevitable’ Dogecoin (DOGE) growth. After Musk’s twit, the DOGE rate increased by 20% within an hour.

‘Precisely because of their limited liquidity low-liquid assets are out of our interest both as investment tools and for short-term operations, since we need certain volumes in order to look for counter deals and hedge positions,’ Mark Sorokin concludes.