- Ethereum’s rally above $2,100 ignites altcoin season, with multiple altcoins posting double-digit gains.
- Experts predict Bitcoin’s dominance to fall, while newer coins like Arbitrum, Aptos, and Optimism outperform older counterparts.
Altcoin Season Takes Off Following Ethereum Rally Crypto Twitter suggests that Ethereum’s (ETH) rise above $2,100 after the Shanghai hard fork has initiated the altcoin season. Numerous altcoins are experiencing double-digit gains in the last 24 hours, while Bitcoin has seen moderate growth.
Experts Foresee Altcoins Outperforming Bitcoin Former BitMEX CEO Arthur Hayes is among the experts who have announced the new altcoin season. Hayes shared the 4-hour chart of ETH on Twitter, quoting rapper Jay-Z in a tweet, “Allow me to reintroduce myself. My name is ALTSZN!!!” Other experts, like Scott Melker, also known as The Wolf Of All Streets, have expressed similar expectations for altcoins to outperform Bitcoin in the coming weeks.
Altcoins will build insane wealth for some, destroy wealth for most.
Regardless huge opportunities are here.
Here’s what you need to know.
However we’re not in a full…
— Koroush AK (@KoroushAK) April 14, 2023
Melker’s analysis points to a strong case for altcoin outperformance as Bitcoin dominance has remained between 39% and 49% for years. He explains that when the RSI hits overbought at the top, dominance drops, and altcoins perform better. Melker anticipates Bitcoin’s dominance to decline in the coming weeks, with altcoins experiencing significant gains, unless there is a major breakout and Bitcoin dominates the market.
Focus on Newer Altcoins
Crypto Banter’s Miles Deutscher is particularly interested in newer coins, which have confirmed his theory with double-digit price gains in the last 24 hours. He observes that newer coins like Arbitrum (ARB), Aptos (APT), and Optimism (OP) are outperforming older counterparts.
This is down to 3 factors:
1. New tech offers an improvement on its predecessors, either material or perceived.
2. Lack of historic price action (resistance) is less psychologically limiting in terms of upside.
There’s also a perception that the new coins can replicate how…
— Miles Deutscher (@milesdeutscher) April 14, 2023
Deutscher predicts that the market will continue to gravitate toward newer coins for three reasons. Firstly, new technology offers improvements over predecessors. Secondly, the lack of historical price movement (resistance) is psychologically less limiting for upside potential, making investors believe that new coins can replicate the performance of older ones. Lastly, current trends have a more significant impact on retailer awareness than older narratives.
At the time of writing, Arbitrum (+18.8%) was the biggest gainer within the top-100 by market cap, while Aptos (+10.4%) and Optimism (+9.3%) also showed strong gains.
Nonetheless, cautionary voices like trader “Koroush AK” warn that the current market situation is more similar to 2019, with isolated narrative pumps, sharp crashes, and unpredictable ends to the cycle.