In this article, we will discuss if it is a good time to invest in altcoins or not. But before diving into the main topic, let’s also take a look at Bitcoin, which will set the foundation for analyzing altcoins’ performance.
Read more: Is the alt season in jeopardy as Bitcoin slides below $30,000?
Bitcoin fractals
Analyzing Bitcoin price action from 2021 and 2023 reveals a bearish setup. As the image below shows, if the 2021 formation plays out, BTC could undergo a steep correction.
BTC/USDT fractal 1 chart
The second fractal, pointed out by Twitter user ColdBloodedShiller, shows that a bearish divergence was followed by a minor correction and a massive breakout.
BTC/USDT fractal 1 chart
While both scenarios are likely, the first outlook seems more plausible to me. Why? Here are a few reasons:.
Bitcoin price hasn’t lived up to the approval of long-delayed ETFs despite their benefits to the Bitcoin ecosystem. In other words, this bullish news hype is already priced in.
The historical Bitcoin returns reveal that the third quarter of the year (Q3) is typically associated with bear markets or profit-taking. Hence, the total returns for Q3 or the individual months is not impressive.
There is, however, a chance for Bitcoin bulls to kickstart an uptrend by cementing their position above $32,000. Such a development could push BTC back to $35,000 and $41,000 resistance levels.
Also read: Top 3 altcoins to buy for next alt season: PEPE, OP, BNB
A failure, however, will lead to a steep correction to $28,100 and $27,300 support levels. If this second scenario plays out, the chances of an altcoin rally are slim. But if Bitcoin price continues to rally higher, then altcoins have a better chance at kickstarting a mini alt season.
Read more: What is alt season
Top Three Reads
XRP holders want to write letters to Judge Torres, lawyer says no good can come from it
Bitcoin ETFs are not a winner take all, experts say, as influence on crypto exhausts
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 gainers Supra, Cosmos Hub, EOS: Supra leads recovery after Trump’s tariffs announcement
Supra’s 25% surge on Friday calls attention to lesser-known cryptocurrencies as Bitcoin, Ethereum and XRP struggle. Cosmos Hub remains range-bound while bulls focus on a potential inverse head-and-shoulders pattern breakout.
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market
Bitcoin price remains under selling pressure around $82,000 on Friday after failing to close above key resistance earlier this week. Donald Trump’s tariff announcement on Wednesday swept $200 billion from total crypto market capitalization and triggered a wave of liquidations.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker is back above $1,300 on Friday after extending its lower leg to $1,231 the previous day. MKR’s rebound has erased the drawdown that followed United States President Donald Trump’s ‘Liberaton Day’ tariffs on Wednesday, which targeted 100 countries.
Gold shines in Q1 while Bitcoin stumbles
Gold gains nearly 20%, reaching a peak of $3,167, while Bitcoin nosedives nearly 12%, reaching a low of $76,606, in Q1 2025. In Q1, the World Gold ETF's net inflows totalled 155 tonnes, while the Bitcoin spot ETF showed a net inflow of near $1 billion.
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market
Bitcoin (BTC) price remains under selling pressure and trades near $84,000 when writing on Friday after a rejection from a key resistance level earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.