Altcoins are demonstrating resilience in the wake of Bitcoin’s recent recovery, leading analysts to speculate that an altcoin season may be on the horizon.
In a post on X, ParabolicPump, co-founder of Crypto Capital, expressed optimism about the bullish trend in many altcoins over the past few days. Likewise, popular trader 360Trader noted that TOTAL3, which refers to the total crypto market capitalization excluding BTC and ETH, has retested the upper boundary of a falling channel. If the price decisively closes above this level, it could be a significant blow to bearish sentiment.
According to ParabolicPump, as altcoin prices surge, Bitcoin’s dominance is poised for a downside break from its rising wedge. This observation suggests that investors may want to sell BTC and allocate their capital to alternative coins. Data from Cointelegraph Markets Pro and TradingView reveals that as of September 23, Bitcoin’s dominance stands at 57.39%, down 1.09% in the past week.
Notably, Nebraskangooner, a popular analyst, believes that Bitcoin dominance’s recent rise to 58.61% might signal a peak, as a bearish divergence from the relative strength index (RSI) indicates a weakening market structure for BTC.
Meanwhile, pseudonymous analyst Moustance has observed that TOTAL2, which represents the altcoins’ total market cap excluding BTC, is on the verge of breaking out of a descending broadening wedge that has persisted for the last six months. Moustance points to the RSI breaking out of a downward trend and an impending bullish cross from the moving average convergence divergence indicator as supporting factors for the optimistic outlook on altcoins.
However, despite these positive indicators, it may still be premature to declare the start of an altcoin season, according to the altcoin season index by Blockchain Center. The index suggests that only 39% of the top 50 altcoins have outperformed Bitcoin in the last 90 days, indicating that altcoin season has not yet arrived.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.