A widely-followed crypto analyst says that the price movement of small-cap tokens suggests that the altcoin season could be underway.
In a new video, the host of the YouTube channel InvestAnswers tells his 441,000 subscribers that while small-cap altcoins are still trading 5% below their price on December 12th, the trajectory indicates potential for a big rally.
“Here according to this chart from Blockchaincenter.net, it looks like close to it [altcoin season]. To be in Bitcoin season, you need to be under 25. To be in altcoins, you need to be 75, but the point is it’s bouncing up. Altcoin season, this chart says no, but it looks at 90 days. If you look at the last month, you could argue it could be altcoin season.”
The analyst says that wallets holding the leading altcoin Ethereum (ETH) are now raking in profits.
“The Ethereum addresses in profit [is] now at 52%, not as high as Bitcoin but still creeping up there pretty well with the rebound in the Ethereum price breaking $1,300, which is a positive for many.”
ETH is trading for $1,402 at time of writing.
The analyst also says data from crypto insights firm Santiment indicates a surging optimism for altcoins.
“The altcoin rally has rung in a very welcome new year for crypto and whether prices continue surging depends on whether traders are content with their FOMO [fear of missing out] as you saw with Bitcoin, there was some profit taking. Again alt season, who knows? A lot of people are very, very excited in the Twitterverse right now and we’ll see where it goes, but we saw crazy, crazy action for many, many big names out there as well.”
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