Altcoin Season in February 2025?
Altcoin Season in February 2025?
The crypto market witnessed a historic liquidation event on Monday, wiping out over $2 billion in positions. While some predict an imminent ‘altcoin season,’ others remain cautious, prompting debate on whether February will mark the market recovery or if a wait until April is more realistic.
Analyst Perspectives on Market Recovery
Following the massive liquidation, triggered by market events, analysts offer differing timelines for market recovery. Blockchain analyst Mathew Hyland highlights that while Bitcoin held strong, altcoins suffered significantly, leading to the record liquidation. He suggests a full recovery may take over two months, referencing previous market downturns in 2020 and 2022.
“Considering this was the largest liquidation event in Crypto history, it likely means the low is in. However, in 2020 & 2022, it took over two months for the full recovery to take place,” Hyland stated.
Similarly, technical analyst CryptoCon described the event as a shakeout of overleveraged traders, acknowledging a potential cycle but not an immediate recovery.
“What happened to a good-performing February? Still inbound, the cycle is well on track. It is clear that certain entities do not want people longing altcoins from their bottoms at 100X for the entire bull market,” the analyst stated.
Other analysts, like CryptoRover, maintain a positive outlook, predicting a parabolic rise in altcoins soon.
Arguments for February Altcoin Season
Conversely, some analysts, such as Merlijn The Trader, strongly believe February will ignite altcoin season, pointing to historical data and suggesting this cycle will follow the same pattern.
“Altcoin season starts in February! History doesn’t lie, and neither do the charts,” said Merlijin.
Others reference Bitcoin dominance as a key indicator, noting its potential top and suggesting it sets the stage for altcoins to rally. Analyst Coinvo shares this sentiment, predicting a February altcoin season based on historical trends.
“Altcoin season has always started in February, and this cycle will be no different,” chimed Coinvo.
However, analyst DevKhabib presents a contrasting viewpoint, highlighting February as potentially bullish for Bitcoin itself, citing a strong support level around $91,000 and predicting a positive month overall.
“$91,000 seems to be a strong support for BTC as we bounced directly off it. Let us hope we continue to range above $94,000 so the market can recover a little bit. February usually is green, and I think we will still get a bullish February. A bad beginning makes a good ending,” the analyst expressed.
IntoTheBlock data reinforces this, showing significant Bitcoin support between $95,620 and $98,505, with around 1.74 million addresses holding BTC at an average price of $97,195.
Disclaimer: This analysis does not constitute financial advice. Readers should conduct their own research and consult with a financial professional before making any investment decisions.