Crypto Market Set for Boom as Experts Forecast Shift to Altcoins

Bitcoin Gains 7% in September, Analysts Predict Altcoin Surge Crypto Market Set for Boom as Experts Forecast Shift to Altcoins

Bitcoin saw a 7% rise in September despite a slight 3% dip towards the end of the month. Swissblock analysts are forecasting a potential shift in market momentum, with altcoins poised to outperform Bitcoin due to favorable factors like China’s economic stimulus and possible repayments from the FTX case.

While Bitfinex has cautioned about potential market overheating, the exchange views a minor correction as a healthy step to maintain the broader uptrend. Historical trends also suggest Bitcoin could hit a new all-time high by late 2024 or early 2025, fueled by decreasing exchange reserves and reduced selling pressure.

Bitcoin Recovers with 7% Gains in September Despite Late Month Dip

In a recent research note, Swissblock analysts highlighted Bitcoin’s impressive recovery in September. Despite a 3% decline in the final 24 hours, Bitcoin still achieved a 7% overall gain for the month, rising from just $58,000 at the start. This marks a stronger-than-expected performance for the original cryptocurrency.

Bitcoin, monthly chart, source: CoinMarketCap

Swissblock: Altcoins Poised for Breakout Amid Favorable Market Conditions

Swissblock analysts believe the stage is set for altcoins to outperform. While Bitcoin benefited from the recent Fed rate cut, China’s economic stimulus and the potential for FTX repayments are fueling optimism among crypto investors, signaling a promising outlook for altcoins.

Swissblock Reports Bitcoin Stability Amid Strong Market Indicators

Swissblock noted that Bitcoin has demonstrated “stability and strength,” although the risk index displayed in the Speedometers remains steady at zero. The indicators reflect bullish price momentum and neutral on-chain fundamentals, suggesting a stable outlook for Bitcoin in the current market environment.

Bitfinex Warns of Potential Market Overheating Despite Historical October Gains

Bitfinex analysts are sounding a cautionary note for investors, noting that while October is typically associated with strong returns, current indicators suggest the market may be reaching a “temporary equilibrium.” The analysts pointed out that, although Bitcoin has reclaimed significant on-chain levels—such as the Short-Term Holder Realised Price of $62,750—there are emerging warning signs.

Key metrics, including spot market buying, which had been robust since the September 6th local bottom, have recently plateaued. Additionally, open interest (OI) has surged past $35 billion (AU$50.6 billion), a level historically indicative of “local price peaks.”

Market Overheating Concerns Emerge as Bitcoin Consolidates Between $50K and $68K

Amid concerns of potential market overheating, analysts suggest that a minor correction of 5-10% could reset open interest (OI) without disrupting the overall uptrend. Currently, Bitcoin is consolidating between $50,000 (AU$72,300) and $68,000 (AU$98,300), mirroring patterns observed in 2020.

If historical trends hold, Bitcoin could be on track to achieve a new all-time high by the end of Q4 2024 or early 2025. This outlook is supported by declining exchange reserves and a reduction in passive selling pressure.