Altcoin Season Dawning? Analyst Sees Bullish Shift

• Michael van de Poppe believes the altcoin season is gradually setting in.
• There are signs that things can only get better from September for altcoins.
• The altcoins market cap is recovering from a recent pullback.

Crypto analyst Michael van de Poppe believes the altcoin season is gradually setting in. In a recent post on X, Van de Poppe noted an increasing bullish momentum in the altcoins market, with most digital assets increasing daily. According to him, there are signs that things can only get better from September, as far as the altcoins are concerned.

Feels strange, right?#Altcoins going up day after day.

Some particular ones are doing great, through which we’re starting to show some momentum.

I don’t believe September is going to be worse, I think we’ll gradually accelerate upwards from here.

— Michaël van de Poppe (@CryptoMichNL)
September 12, 2024

Read also: Key Altcoins Signal Potential Undervaluation: LDO, NEXO, SUI, JUP, and OND

This positive outlook is backed by the altcoin market cap (TOTAL2) chart, which includes Ethereum. It shows an upward reversal after a pullback in the second half of the year. TradingView data reveals the altcoin market cap fell from $1.09 trillion in early July to $721.8 billion during the August 5th crypto crash.

Notably, the crucial crypto metric has since reflected a classic reversal pattern, with a rejection candle on the weekly chart in August’s first week. A rally followed, then another pullback in early September. The current market behavior suggests the bulls are back, potentially buying digital assets at attractive prices.

Technical Analysis Points to Uptrend

From a technical analysis angle, the altcoins market cap weekly chart has registered a second bullish reversal candle in about five weeks, leading analysts to believe a sustained uptrend might be in sight. The altcoins market cap rallied to $862.9 billion this week after dropping to $775.5 billion in the first week of September.

The recent rally signaled the return of bullish momentum in the altcoin market, even though the market cap pulled back slightly to trade for $847.65 billion at the time of writing. However, it is worth noting that the recent pullback returned the metric below the 0.236 Fibonacci level on the weekly chart, a break above, which could trigger an altcoin market surge.

The altcoin market cap excluding Ethereum (TOTAL3) shows a similar trend, reinforcing the overall positive sentiment. The metric has recorded back-to-back reversal candles in the past five weeks and surged significantly this week. The consistency between TOTAL2 and TOTAL3 suggests the bullish reversal is not specific to Ethereum, the leading altcoin, but spreads across the entire market, further signaling the beginning of an altcoin season.

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