Altcoins Face Bearish Sentiment From Investors Even As Altseason’s Potential Grows

One of the most anticipated moments in the ever-dynamic crypto world lately is Altcoins Season, a period in the sector when huge capital inflows move from Bitcoin, the largest digital asset, to smaller market cap coins. Many predictions about an alt season are unfolding, but it seems optimism toward the event is weakening as volatility reemerges.

Skepticism Toward Altcoins Still Lingers

Amidst recent growing volatility, several crypto analysts continue to predict that an altcoin season could be on the horizon. The most recent analyst who has forecasted an altseason before the ongoing bull market cycle ends is Mags.

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After examining the ETH/BTC chart in the 1-year time frame, the expert hints at a shift from a Bitcoin season to an altseason as it forms a macro trendline. Looking at the chart, the pair has reached a similar level that kept the altcoins market stable during the previous cycle.

Should the price recover from the level, Mags is confident that an altseason might occur before the final rejection from the macro trendline. “If it plays out, we might see a sharp move before the upcoming bear market,” the expert added.

Even though crypto analysts, technical indicators, and historical trends point to an incoming altseason, investors’ recent mood towards altcoins contradicts this notion. This is due to their ongoing skepticism and bearish conviction in the digital assets as they persistently face volatility.

Specifically, this waning sentiment is spotted among large investors or whales, triggering concerns about the altcoins’ future. In a post on the X platform, Alphractal, an advanced on-chain data platform, reported that these large investors are consistently showing interest in shorting altcoins.

Data shows that whales are more likely to close their long positions and place short bets in most altcoins, whereas retail investors are left vulnerable. The Whale vs. Retail Delta indicator highlights this proportionate disparity between the positions held by large and small investors. 

According to the on-chain platform, whales are frequently more interested in closing longs and opening shorts when the values are negative. Meanwhile, positive values indicate an emphasis on opening long positions and closing short positions. 

Such a development suggests a cautious approach from big investors, if not an outright bearish notion, as Bitcoin dominance gradually rises, which is currently positioned at 63.8%. During this waning period, Alphractal stated that the secret to not going against the flow may be understanding what large investors are doing now.

Altseason Mirroring Previous Cycle

While an altseason seems likely, Cas Abbe, a crypto analyst and trader, has predicted a similar season to past cycle trends. Using the 2-week time frame chart, the expert believes the impending 2025-2026 altseason will most likely follow the 2017-2018 trend.

Cas Abbe believes this could happen, citing US President Donald Trump’s previous administration in the cycle. During this period, altcoins failed to pump in Q1, and this time was no exception. He further drew a comparison between the current activity of the FED and China to the 2017-2018 cycle. Thus, Cas Abbe is confident alts will see a lengthy rise starting in Q2, with a blow-off peak in Q1 2026.

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Featured image from iStock, chart from Tradingview.com

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