Analysts suggest that the highly anticipated “altseason” in the crypto market may be just around the corner. Despite the recent volatility of Bitcoin’s price, the altcoin market capitalization has remained relatively stable, consistently testing the $315 billion support level for weeks. This has caught the attention of crypto traders who are expecting smaller-cap cryptocurrencies to experience significant growth during the next phase of the bull market.
In the past, altcoin prices have typically lagged behind Bitcoin, but certain indicators such as altcoin market capitalization and Bitcoin dominance can provide signals for when altcoins may enter their own bull season. However, altcoins have not yet reached that point. While Bitcoin remains close to its all-time high, most altcoins have experienced corrections since reaching their highs in mid-March.
Market analysts are now closely monitoring the Bitcoin dominance chart, which has remained above 50% since September 2023 and currently stands at 54.5%. According to analyst ‘Crypto Nova,’ the shift in Bitcoin dominance is a key indicator that signals the start of altcoins shining. Although this shift has not occurred yet, the chart has been moving sideways, which often precedes a reversal.
Another technical analyst, ‘Titan of Crypto,’ expressed belief in the occurrence of another altseason. They referred to the Ichimoku technical indicator, suggesting that it will play a significant role in blocking Bitcoin dominance and initiating the altseason.
Furthermore, analyst Kevin Svenson highlighted the potential for a massive bull run in the altcoin market cap. He emphasized that after Bitcoin’s halving, the narrative often shifts towards altcoins, which positions them for significant growth.
Currently, most altcoins are trading flat, and the total crypto market capitalization stands at around $2.74 trillion. While outliers like Toncoin have reached all-time highs, many high-cap altcoins, including XRP, Dogecoin, Cardano, Avalanche, Bitcoin Cash, Polkadot, and Chainlink, remain significantly down from their peak prices in 2021. In contrast, Bitcoin has only experienced a minor decline of less than 5% from its all-time high.
In related news, data suggests that a considerable number of new Base memecoins are scams, with 1 in 6 being fraudulent and 91% having vulnerabilities.