Talks of an impending altcoin season are once again gaining traction in the market as major cryptocurrencies saw a fresh rebound at the start of this year. A crypto analyst has likened the current altcoin market trend to that seen in January 2019—a period that marked the early stages of a major market turn. The comparison now has many traders watching closely to see whether the market could be setting up for a similar move.
Current Altcoin Market Echoes Trend From January 2019
Crypto pundit Chad Steingraber said in a recent X post that today’s market feels a lot like January 2019, when investor sentiment was extremely negative. At the time, Bitcoin was trading near $3,000, and Ethereum’s price was around $100, when most believed the market was over. Yet despite the downtrend, the analyst revealed that he had invested heavily in both cryptocurrencies.
Although the market was recovering from a bear market, Steingraber revealed that things began to turn around in April of that year, leading to the strong long-term results that are now widely known. Notably, during that time, the crypto market saw a strong breakout that changed sentiment across the space.
According to CoinGecko’s yearly report for 2019, Bitcoin’s price surged over $13,000 in June and ended the year 95% higher than where it started. This price jump helped drive a broader market rally and marked a key transition from bear market lows earlier in the year. Altcoins also reacted to this surge in market momentum, as traders and investors sought growth beyond Bitcoin and diversified into lower-cap cryptocurrencies.
While some altcoins, including Ethereum, Litecoin, and Bitcoin Cash, climbed by more than 40% in 2019, other large-cap tokens, such as XRP, performed poorly, finishing the year significantly weaker despite earlier strength in 2018. Excluding individual altcoin gains, the total cryptocurrency market capitalization grew by more than 44% in 2019, peaking at $350 billion in late June. The market also experienced a surge in trading volume of over 600%, along with renewed enthusiasm among investors who had stayed on the sidelines during the prior downturn.
Altcoin Market Eyes Breakout As Analyst Flags 221B Level
In a separate post, crypto analyst @brain2jene shared a chart tracking the total altcoin market capitalization, excluding the top 10 coins. He explained that a Falling Wedge breakout has already set the stage for the market’s next move. The analyst noted that the wedge pattern has been forming for weeks and emphasized that altcoins typically begin to move once the price breaks above the wedge lines shown on the chart.
The chart also shows a clear pullback after the price hit the 221.87B resistance, which @brain2jene identified as the key level to watch. He explained that a clean break above 221.87B is critical and could add another $50-$60 billion to the market, with the target zone near the upper trend line.
Related Reading: Altcoin Season Index Crashes To Low 17 As Bitcoin Price Struggles, What This Means
Supporting this outlook, momentum appears strong, as the RSI on the chart has broken out of a downtrend. The analyst noted that this could signal the start of a broader altcoin rally, potentially boosting the price of coins like VeChain (VET), SUI, Internet Computer (ICP), and IMO.
Featured image from Adobe Stock, chart from Tradingview.com
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