Amidst the growing hype of digital currencies, analysts suggest that the altcoin season might be just around the corner, citing historical pattern. With the Bitcoin dominance charts indicate a possible reversal, currently standing at its highest level since March 2021, at 54.60%. This suggests that the next altcoin season could be on the horizon.
Altcoin Rally To Begin…
Renowned crypto analyst Rekt Capital recently shared an analysis shedding light on the resilience of the Altcoin Market Cap amidst Bitcoin’s price fluctuations. Despite Bitcoin’s volatility, the Altcoin Market Cap has consistently hovered around the crucial $315 billion support level, as observed in historical patterns.
Meanwhile, the Bitcoin dominance chart, which has maintained levels above 50% since September 2023, currently stands at 54.6%, indicating the possibility of an extended altcoin rally in the near future.
However altcoin are appealing because they offer the chance for higher profits, even though they come with more risk. Traders keep a close eye on altcoin markets for signs that a bull market is coming, as altcoins usually go up after Bitcoin’s price rises.
Bullish Sentiment On Altcoin
Adding to the bullish sentiment, analyst Kevin Svenson highlighted the favorable positioning of the altcoin market cap, signaling a forthcoming uptrend. Svenson notes the historical trend of market focus shifting to altcoins after Bitcoin halving events, indicating potential gains ahead.
Despite the optimism surrounding altcoins, the broader cryptocurrency market remains relatively subdued, with total market capitalization hovering around $2.74 trillion.
Bitcoin Dominance Declining
Another well respected analyst Crypto Nova, suggests that a decline in Bitcoin dominance often precedes increased altcoin momentum, with signs of a possible reversal indicated by sideways movement in the dominance chart.
Supporting this view, technical analyst ‘Titan of Crypto’ points to the Ichimoku indicator as a possible trigger for blocking Bitcoin dominance and initiating the alt season.
Altcoins Waiting To Explode
However, despite the optimism surrounding altcoins, the overall cryptocurrency market remains relatively subdued, with total market capitalization hovering around $2.74 trillion.
While some outliers like Toncoin have hit new highs, many leading altcoins, including Bitcoin Cash, XRP, Dogecoin, Cardano, Avalanche, Polkadot, and Chainlink, still lag significantly behind their 2021 peak prices.
