Market analysts are predicting that the highly anticipated “altseason” in the cryptocurrency world could be just around the corner. Despite the price volatility of Bitcoin in recent weeks, the altcoin market capitalization has remained relatively stable, consistently testing the $315 billion support level. This has caught the attention of crypto traders who are eagerly awaiting the next phase of the bull market, as altcoins typically experience significant price appreciation following Bitcoin’s lead.
Historically, altcoins have lagged behind Bitcoin in terms of price performance. Traders often look at indicators such as altcoin market capitalization and Bitcoin dominance to gauge when altcoins might enter their own bull season. However, it seems that altcoins have yet to catch up, as most of them have experienced corrections since reaching their highs in mid-March, while Bitcoin remains close to its all-time high of over $70,000.
Market analysts are now turning their attention to 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 signal that altcoins are about to shine. While this shift has not yet occurred, the sideways movement on the chart often precedes a reversal, indicating the potential for an upcoming altseason.
Technical analyst ‘Titan of Crypto’ also shares this sentiment, citing the Ichimoku technical indicator as a key factor in blocking Bitcoin dominance and initiating the altseason. Furthermore, analyst Kevin Svenson believes that the altcoin market cap is poised for a massive bull run, particularly after Bitcoin’s halving event.
Despite the overall flat trading of altcoins and the total crypto market capitalization currently standing at around $2.74 trillion, there are outliers such as Toncoin, which recently reached an all-time high. However, most high-cap altcoins, including XRP, Dogecoin, Cardano, Avalanche, Bitcoin Cash, Polkadot, and Chainlink, have experienced significant declines from their peak prices in 2021, whereas Bitcoin remains relatively close to its ATH, with less than a 5% decrease.
In related news, it has been reported that a significant number of new Base memecoins are scams, with 1 in 6 being fraudulent and 91% having vulnerabilities. This highlights the importance of conducting thorough research and due diligence when investing in the cryptocurrency market.
Overall, while the altseason has yet to fully materialize, market analysts remain optimistic that it is on the horizon, with various indicators suggesting that altcoins may soon experience a surge in value.