- Aussie analyst Miles Deutscher has provided an update on the altcoin market, claiming that the six-month regression channel may be coming to an end.
- According to his chart, the current market rally is showing signs of breaking out of a ceiling, which could cause a bull run to finish 2024.
- He believes that L1 and GameFi altcoins will be big movers if such a breakout occurs, while also noting that AI tokens are “here to stay”.
Can you smell it?
No, it’s not the scent of roses as spring sun showers bloom delightful roses and fields of lavender.
It’s the smell of optimism returning to the markets.
Terrible imagery aside, it’s been a hopeful couple of weeks on the crypto front. Thanks in part to the US Feds lowering interest rates, Bitcoin broke through its US $62k (AU $90k) resistance level while several major altcoins posted double-digit gains.
So now the question remains: Is altcoin season back on the menu? Or is it yet another false dawn?
Aussie analyst Miles Deutscher weighed in on the topic.
Related: My Top Crypto Charts to watch right now!
Break Out or Break Down? Altcoins On the Cusp of Trend Reversal
Speaking in his latest YouTube video, Deutscher argues that the altcoin market is currently sitting on a knife’s edge, and a trend in either direction is possible from here.
Since March, altcoins (all cryptocurrencies excluding Bitcoin and Ether) have trended downward through a regression channel.
Looking at this graph posted by Deutscher, we can see that, for the first time in six months, altcoins are on the verge of breaking out. If the candles keep moving upwards, with repeated closes above the top line of the channel, Deutscher believes this will signal a trend reversal and could be the catalyst for a buoyant altcoin season.
Of course, we still need several week’s worth of data to determine if this is truly a breakout, or just another ceiling test. If the latter is true, the downtrend will likely continue within the channel until another potential breakout forms.
Nevertheless, it does present some optimism that the tides may be turning.
Related: Commonwealth Bank of Australia Interested in Crypto, but “Long Way to Go” in Australia
Layer 1s, GameFi and AI Here to Stay
Miles Deutscher continues his video by discussing the altcoins he believes are poised to benefit in a potential market bull run. In particular, he’s interested in leading projects from specific sectors, such as Layer 1 ecosystems, AI coins and RWA projects.
Deutscher argues that the narrative is coming back to L1s, with several projects making big upgrade announcements at the Token 2049 conference held this month. His watchlist includes SUI, Fantom, Solana and Near, each of which he thinks could be large players in the next altcoin season.
In terms of AI, Deutscher is bullish on Tao, Fet and Prime, while he’s keeping a keen eye on Ondo Finance as an RWA project.
However, the major portfolio adjustment from Deutscher was increasing his exposure to the GameFi sector. With blockchain gaming becoming less “boring”, Deutscher has begun accumulating Super and Beam tokens as part of diversifying his crypto portfolio.
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