Altcoins May Be Gearing Up for Q1 Hype Cycle, Says Crypto Trader – Here’s What He Means

A closely followed crypto analyst says that altcoins could be entering into what he describes as a “hype cycle” phase to start the new year.

Pseudonymous analyst Rekt Capital shares with his 392,000 followers on the social media platform X a chart suggesting that altcoins go through cycles of hype that peak roughly every three months.

According to the trader, altcoin hype should rise sometime in mid-February and peak around the beginning of April.

“Altcoins may slowly be preparing for a Q1 Hype Cycle

Periods of lowest hype correspond to periods of lowest prices

Typically, lowest hype towards Altcoins for a Q1 Hype Cycle is between January and April.”

Source: Rekt Capital/X

Zooming in on specific altcoins, Rekt Capital looks at Ethereum (ETH) Avalanche (AVAX). According to him, AVAX is potentially forming support near the $35 level.

“AVAX

Avalanche continues to successfully retest its Macro Downtrend as new support, despite whatever downside volatility has occurred below it.”

Image
Source: Rekt Capital/X

On the other hand, Rekt Capital says that Bitcoin may be at a critical long-term resistance. His chart suggests that BTC is brushing up against a long-term diagonal resistance line, which may take a few attempts to get past if history is any indicator.

“Bitcoin has reversed straight back into the Macro Diagonal resistance.”

Image
Source: Rekt Capital/X

At time of writing, Bitcoin is trading at $43,100.

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