The cryptocurrency community is abuzz with speculation of an impending ‘altseason,’ a period typically marked by substantial gains in alternative cryptocurrencies, or ‘altcoins.’
Traders and analysts have noted several bullish signs on technical charts that suggest smaller-cap cryptocurrencies could soon see significant value increases.
Analysts: Altseason’s Arrival Seems Unavoidable
Renowned trader and analyst Rekt Capital recently highlighted that despite Bitcoin’s volatile price action, the altcoin market cap has consistently tested the $315 billion mark as a support level. This steadfast behavior amidst market swings could signify a foundation for the next bull run.
Altcoin market cap excluding top 10. Source: Rekt Capital
Crypto enthusiasts often look to altcoins for their higher risk-to-reward ratio, anticipating considerable surges during bull market phases. Traditionally, altcoins tend to follow Bitcoin’s lead, with their value appreciations lagging behind the premier cryptocurrency’s price movements.
Market capitalization charts and Bitcoin dominance metrics serve as indicators for analysts predicting when altcoins might embark on a bull season. Nevertheless, most altcoins have recently corrected following mid-March highs, while Bitcoin remains near its record peak of over $70,000.
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This correction has not deterred analysts from keeping a close watch on the Bitcoin dominance chart, which has been over 50% since September 2023 and currently sits at 54.65%, per Tradingview data.
Analyst Crypto Nova suggests that a shift in Bitcoin dominance is typically the precursor to altcoins outshining their predecessor. Although a reversal is not yet apparent, she notes that the lateral movement on the chart often precedes such changes.
Bitcoin Dominance. Source: Crypto Nova
“But overall speaking it’s increasingly clear and almost good as guaranteed that the shift from Bitcoin outperformance (BTC dom rising) To altcoin outperformance (BTC dom dropping) is happening,” Crypto Nova Added.
Bull Run Post BTC Halving?
Adding to the discussion, technical analyst Titan of Crypto has publicly expressed belief in another upcoming altseason. They assert that the Ichimoku indicator will likely obstruct Bitcoin dominance and herald the arrival of the altseason.
“I personally believe there will be another altseason. And like in 2021, SSB (Senkou Span B), the strongest line of Ichimoku, will play a big role in blocking Bitcoin dominance, initiating the Altseason2024,” Titan of Crypto stated.
Market Cap BTC Dominance. Source: Titan of Crypto
In a recent communication to his followers, analyst Kevin Svenson posited that the altcoin market cap is primed for a considerable bullish run. He emphasizes the post-Bitcoin halving phase as a historical pivot point towards increased interest in altcoins.
“People often forget … AFTER #Bitcoin‘s Halving is when the narrative shifts toward $Alts,” Svenson said.
Crypto Total Market Cap Excluding BTC and ETH. Source: Kevin Svenson
The crypto market cap hovers around $2.7t trillion, with most altcoins trading flat. Investor anticipation is palpable as market observers await the shifting tide. The evidence mounting in technical charts signals that altcoins may soon take center stage, heralding a potentially lucrative altseason.
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