The chances of a bully rally in the highly anticipated fourth quarter are strong following Bitcoin’s return above the $65,000 price level, according to a crypto analyst.
“The likelihood of a Q4 rally is exceptionally high, with gains likely front-loaded,” 10x Research head of research Markus Thielen stated in a Sept. 27 report viewed by Cointelegraph.
Altcoin FOMO returns as Bitcoin reaches $65,000
Thielen opined that a Bitcoin (BTC) price breakout above $65,000 has “fueled” fear of missing out, or FOMO, returning to the altcoin market. “A major surge could be on the horizon, sparking even more FOMO across the crypto space,” Thielen added.
At the time of publication, Bitcoin is trading at $65,424, according to CoinMarketCap data.
Bitcoin is up 3.04% over the past seven days. Source: CoinMarketCap
Capriole Investments’ Altcoin Speculation Index has climbed to 23%, representing a 13% rise over the past 30 days. This index tracks the percentage of altcoins outperforming Bitcoin over 90 days, with higher readings signaling growing speculation in the market.
Sei (SEI) has led the top 100 cryptocurrencies in gains over the past seven days since Sept. 20, surging 37.79%. It is followed by Wormhole (W), up 32.83%, and Shiba Inu (SHIB), up 32.08%.
SHIB has become a popular investment for South Korean retail investors this week, according to Thielen:
“In the past 24 hours, Shiba Inu has reclaimed the top spot in trading volume in South Korea, signaling rising speculation and setting the stage for a potential Q4 rally.”
Amid the rise in the altcoin market, Bitcoin’s dominance has dipped slightly since Sept. 20, falling about 1.57% to 57.51%, according to TradingView data.
Traders often use this metric to gauge potential capital shifts from Bitcoin to altcoins.
Bitcoin’s dominance is down 1.57% over the past seven days. Source: TradingView
Meanwhile, the Crypto Fear & Greed Index has risen by 11 points since Sept. 26, reaching a “Greed” score of 61.
Additional rate cuts will only increase interest in altcoins
Thielen suggested that if the US Federal Reserve “remains open to cutting rates,” high-beta altcoins will likely gain further momentum.
His comments come shortly after the US Federal Reserve’s Sept. 18 decision to cut interest rates by 50 basis points, a bullish indicator for riskier assets. Declining interest rates make traditional investments like bonds and term deposits less appealing to investors.
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Several crypto analysts hinted on social media that this is just the start of the altcoin bull run, predicting even greater gains ahead.
“Altcoins are waking up significantly, but this is nothing compared to what we’re going to be seeing in the coming 6 months,” MN Trading founder Michael van de Poppe stated in a Sept. 27 X post.
“It’s going to be glorious. It already is,” van de Poppe added.
Meanwhile, on the same day, Joe McCann pointed out that “90% of all altcoins on Binance are above their 50-day moving averages.”
“Altcoins are about to break out of a multi-month downtrend,” crypto analyst Miles Deutcher added.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.