One closely followed cryptocurrency analyst says altcoins could enter what he describes as a “hype cycle” phase to start the new year.
The pseudonymous Rekt Capital analyst shares with his 392,000 followers on the social media platform
According to the trader, the hype around altcoins should pick up sometime around mid-February and peak around the beginning of April.
“Altcoins may be slowly preparing for the Q1 hype cycle
Periods of minimum noise correspond to periods of lowest prices
Typically, the lowest altcoin hype during the Q1 hype cycle is between January and April.”
Focusing on specific altcoins, Rekt Capital looks at Ethereum (ETH) Avalanche (AVAX). According to him, AVAX is likely to form support near the $35 level.
“Avax
Avalanche continues to successfully retest the overall downtrend as new support, despite any bearish fluctuations that occurred below it.”
On the other hand, Rekt Capital says that Bitcoin may be at critical resistance in the long term. Its chart suggests that Bitcoin is hitting a long-term diagonal resistance line, which could take a few attempts to clear if history is any indication.
“Bitcoin has reversed directly into macro diagonal resistance.”
At the time of writing, Bitcoin is trading at $43,100.
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