Altcoin Season and Bitcoin: What to Expect in 2024?

Altcoin Season Analysis

According to crypto influencer Wise Advice, Bitcoin's halving events can trigger substantial growth in Ethereum and other altcoins. After Bitcoin's halving on November 9, 2021, Ethereum reached its all-time high of $4,800 a day later, while Solana's all-time high of $250 was recorded five days earlier. Similar surges were observed during previous Bitcoin halving events.

Money Flow Pattern

Wise Advice explains that altcoin season typically follows a specific pattern:

• Phase 1: Investors purchase Bitcoin, driving up its price.
• Phase 2: Ethereum outperforms Bitcoin, leading to discussions about a potential "flip."
• Phase 3: Ethereum continues to outpace Bitcoin, while large-cap altcoins experience rapid growth.
• Phase 4: Altcoin season begins, with mid-caps, low-caps, and micro-caps surging in value. Large-caps and meme coins also see gains.

Bitcoin Dominance

After each Bitcoin all-time high, its dominance over the cryptocurrency market tends to decline. Wise Advice believes that the current dominance level of 53% suggests the market is at the start of a cycle that could lead to another altcoin season.

Potential Altcoins for This Season

Some altcoins that may perform well during this season include:

• New contenders: Bonk (BONK), dogwifhat (WIF), Pepe Coin (PEPE), and PeiPei (PEIPEI)
• Tap-to-earn game coins: Notcoin (NOT) and Hamster Kombat
• Solana ecosystem coins
• Real-world assets (RWAs)

Bitcoin's Technical Weakness

Bitcoin is currently facing weakness on the technical chart, rejected multiple times by the 200-day exponential moving average. This weakness has been attributed to the German government selling BTC and the Mt. Gox repayment.

Despite Bitcoin's challenges, some altcoins, such as Notcoin (NOT), Celestia (TIA), and MANTRA (OM), are experiencing gains.