Altcoins have displayed strength following Bitcoin’s recent recovery over the past month. This has lead analysts to suggest that the market might be on the brink of an altcoin season.
“The past few days have been very bullish for many #Altcoins!” ParabolicPump, co-founder of Crypto Capital,
said
in a Sept. 23 post on X.
Popular trader 360Trader
observed
that TOTAL3, the total crypto market capitalization excluding BTC and ETH, had retested the upper boundary of a falling channel.
Although this crucial level has suppressed the price since March, 2024, a decisive close above it would confirm a “nail in the coffin for bears,” they said.
Source:
360Trader
According to ParabolicPump as altcoin price rallied, Bitcoin’s dominance is on the verge of a downside breakfrom its rising wedge. “It is only a matter of time,” the analyst pointed out, adding:
As of Sept. 23, Bitcoin’s dominance is 57.39%, down 1.09% over the past week, according to data from
Cointelegraph Markets Pro
and
TradingView
.
Traders often look for signs that
Bitcoin dominance is peaking
as a signal for investors to sell BTC and rotate their capital into alternative coins.
According to popular analyst Nebraskangooner, Bitcoin dominance’s recent
rise to 58.61%
might have marked the top for this metric as a bearish divergence from the relative strength index (RSI) signaled a weakening market structure for BTC.
Altcoin market capitalization. Source:
Moustache
Meanwhile, pseudonymous analyst Moustance
observed
that TOTAL2, the altcoins’ total market cap excluding BTC, was in the process of breaking out of a descending broadening wedge that has been in play for the past six months.
Moustache explained that the optimistic outlook for altcoins was supported by the RSI breaking out of a downward trend and an impending bullish cross from the moving average convergence divergence indicator.
In a follow-up post, the analysts
said
charts and onchain data show that the market is going to “see the biggest bull run since 2017.”
Related:
RSI hints at classic BTC price breakout — 5 things to know in Bitcoin this week
However, it’s not time to celebrate yet as the altcoin season index by Blockchain Center, indicates that the altseason is not yet here. According to this index:
Despite the compelling technicals, it might still be too early to conclude that an altcoin season has begun. The chart below shows that only 39% of the leading 50 altcoins have outperformed Bitcoin in the last 90 days. Since the index is less than 75, it indicates that it is not yet altcoin season.
Altcoin season index. Source: Blockchain Center
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.
Traders Anticipate Altseason as Bitcoin Dominance Declines and Altcoin Market Shows Bullish Trends