Trader predicts Dogecoin and Cardano, alongside two other altcoins, are nearing the end of a period of instability.
Altcoins are currently experiencing weakness in the market while Bitcoin’s price fluctuates between $91,000 and $108,000, with a potential breakout on the horizon. A renowned crypto trader known as Astronomer suggests that altcoin holders exercise patience as history indicates that the most significant altcoin surges tend to occur in the final year of the cycle, which is projected to be in 2025. Drawing parallels to market behavior in 2017, Astronomer points out that altcoins typically remain stagnant until the final year, echoing the current market sentiment towards altcoins.
In contrast, the altcoin market in 2021 saw an early surge from August 2020 to February 2021, only to face a substantial 70% decline mid-cycle. Observers note that Bitcoin’s current price trajectory resembles the gradual parabolic rise witnessed in 2017, as opposed to the rapid and upward movements of 2021. Major altcoins such as Dogecoin, Litecoin, Cardano, and IOTA have historically experienced lethargy in the market until experiencing significant rallies towards the end of the cycle. Contrary to expectations of a sharp decrease in Bitcoin dominance akin to 2021, the current market dynamics are following a pattern of a gradual decline before a sharp fall. Ethereum, another major player in the market, saw a gradual increase in value during 2017, leading to an explosive climb, unlike the more volatile 2021 cycle.
This cyclical market behavior can be attributed to evolving investor psychology where stakeholders anticipate repeating the last cycle but are met with unforeseen developments that challenge their prior expectations. Moreover, the increased involvement of institutional and governmental entities in the market mirrors the retail-driven surge observed in 2017, further contributing to the current market landscape.
Looking ahead, trader Scient notes that the market remains tumultuous, with numerous altcoins experiencing losses as Bitcoin’s price fluctuates within a narrow range. This pattern is indicative of liquidity transitioning from weaker to stronger assets, albeit at an accelerated pace due to market segmentation. Scientist anticipates that the ongoing market volatility will subside by late April but does not foresee an extended altseason. Recommendations include focusing on large-cap assets such as L1/L2s, DeFi, AI, and RWA, with minimal allocations to meme coins.
Furthermore, trader arndxt highlights that Bitcoin has remained range-bound for 60 days, signaling an ongoing period of market choppiness that may impact the momentum of altcoins until Bitcoin makes a definitive move. The expectation is that the current market conditions will persist, thereby posing challenges for altcoins to gain traction until Bitcoin demonstrates a decisive shift.
In summary, analyzing market trends and historical patterns can provide valuable insights into the current status of the cryptocurrency landscape, offering strategic guidance for investors navigating the complexities of the market. Keeping a close eye on Bitcoin’s behavior and understanding the broader market dynamics is essential for making informed decisions in the ever-evolving realm of cryptocurrency trading.
