Bitcoin (BTC) and Altcoins Set for Strong Gains in Q4
As we move further into the year, cryptocurrency analyst Kevin Svenson has shared insights suggesting that Bitcoin and altcoins are poised to experience significant upside bursts. According to Svenson, we're entering a period where these digital assets could see substantial growth, especially as historical patterns are once again emerging.
Historical Patterns and Altcoin Growth
Svenson points to a recurring pattern in the altcoin market cap, suggesting that it’s on a similar trajectory to previous cycles. This pattern was observed in the last cycle when it took approximately 157 weeks for a massive breakout rally to occur. "The altcoin market cap has been consolidating throughout the year. Earlier in 2024, altcoins experienced a significant surge before pulling back, and they're now recovering," Svenson notes.
Svenson highlights that the altcoin market cap is currently breaking above significant resistance levels. At the time of writing, the altcoin market cap (often referred to as TOTAL3) stands at $641 billion. Svenson predicts that about 10 weeks from now, the market will break the lower high, estimated at $820 billion. This suggests a strong growth potential for altcoins into November, indicating a solid Q4 for both altcoins and Bitcoin.
Bitcoin and S&P 500 Correlation
Svenson also draws attention to Bitcoin's price movement in relation to traditional financial markets. Specifically, he points out the correlation between Bitcoin reaching new all-time highs following similar movements in the S&P 500 index. Historically, the S&P 500 hitting a record high has often preceded a new high for Bitcoin. Svenson emphasizes, "S&P all-time highs always precede Bitcoin all-time highs."
Currently, Bitcoin is trading at $65,590, and Svenson believes that its all-time high, previously marked at around $73,800, is within reach. "We are much closer to the all-time high than most people think," Svenson reassures, noting that the current price is less than 14% away from this milestone.
Market Outlook
With these insights in mind, the outlook for Q4 appears bullish for both Bitcoin and altcoins. The combination of historical patterns and correlations with traditional markets provides a compelling narrative for potential growth in the cryptocurrency space. Investors and enthusiasts alike will be watching closely as these developments unfold in the coming weeks and months.