Crypto analysts predict a significant market correction before the next altseason begins.
Short-term Altcoin Predictions
According to TradingView, the total market cap of altcoins outside the top 10 has dropped to a three-month low of $277 billion, a steep 77% decrease from their $492 billion peak in November 2021. Analyst Il Capo predicts altcoins may decline by 20%-40%, with meme coins potentially losing even more. He believes the market isn't ready for a full-fledged altcoin rally yet.
Market Correction Considerations
Il Capo anticipates Bitcoin might experience a 15%-20% dip, which would have a short-term impact on altcoin prices. Stronger projects may drop by 20%-30% while weaker ones could decline by 30%-40%. Due to their volatility, meme coins might lose 50%-60% of their value. For instance, a trader recently made $28 million on the 'Broccoli' meme coin.
Outlook for Altseason
Historically, altseasons have kicked off around 6-9 months after Bitcoin peaks. The next Bitcoin halving is set for April 2024, with analysts expecting a similar timeline: a strong BTC run through late 2024 followed by a shift into altcoins in early 2025. For altseason to commence, Bitcoin must first peak and stabilize, allowing traders to rotate funds into alternative assets.
Despite warnings of possible corrections, crypto traders remain hopeful that a new altseason could start soon if the outlined conditions are met.
