Analyst Declares the Dawn of Altcoin Season

A well-known advocate of technical analysis, Peter Brandt, has announced the beginning of the «altcoin season.»

In his post on X, he attached a chart showing the total market capitalization of cryptocurrencies, excluding Bitcoin, which features a «Cup and Handle» pattern. This bullish formation suggests a potential continuation of the upward trend following a consolidation phase.

The Altcoin Season Index has yet to distinctly signal the start of an altcoin season, although its values are rapidly increasing.

In the past 24 hours, leading alternatives to Bitcoin have significantly appreciated, while the market’s flagship cryptocurrency has decreased in value by 0.5%.

Evgeny Gaevoy, the founder of the market-making firm Wintermute, reported that the supply of Ethereum on an over-the-counter platform for institutional clients has nearly run out, indicating strong demand for the asset.

Founded in 2017 by Gaevoy and Harro Mantel, the London-based Wintermute is a key liquidity provider in the cryptocurrency market.

However, Ethereum continues to exhibit inflationary traits, with its supply increasing by approximately 0.69% per year, reflecting relatively low on-chain activity.

Over the last day, Ethereum’s price surged by 9.1%, breaking the $3400 mark amid a record influx into ETFs.

The renewed interest in the coin is also evidenced by a historic open interest for futures contracts, surpassing $50 billion.

The MVRV indicator, aimed at short-term holders (STH), indicates potential for further price growth, as noted by CryptoQuant contributor Darkfost.

His observations revealed that during this market cycle, the total unrealized profit of short-term holders has never approached the 42% level.

«Whenever the STH MVRV hit around 1.35, corresponding to a ‘paper’ profit of 35%, it led to profit-taking and a short-term correction. We are still far from that threshold, as it currently stands around 1.15,» Darkfost noted.

The analyst pointed out that on July 11, the realized price for short-term holders «for the first time in Bitcoin’s history» exceeded $100,000, later surpassing $102,000.

«Thus, digital gold still has the potential for a 20-25% increase before reaching a critical MVRV level. In other words, the market retains its bullish momentum until the next wave of profit-taking,» concluded the expert.

In parallel, Glassnode analysts observed an increase in Bitcoin holdings concentrated among early cryptocurrency buyers, rising from 4.77 million to 4.91 million BTC (+2.86%).

«Fresh capital continues to flow into the market, supporting the recent price surge,» emphasized the researchers.

As a reminder, Glassnode analysts have warned that Bitcoin’s price is entering a «zone of overheating.»