Traders Foresee Altseason as Bitcoin Dominance Decreases and Bullish Altcoin Market Emerges

Altcoins have displayed strength amid Bitcoin’s recovery over the past month, leading 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 Bitcoin (
BTC
) and Ether (
ETH
), has retested the upper boundary of a falling channel.
Although this crucial level has suppressed the price since March, a decisive close above it would confirm a “nail in the coffin for bears,” the trader said.


Source:
360Trader
According to ParabolicPump, as altcoin prices have rallied, Bitcoin’s dominance is on the verge of a downside break from its rising wedge. “It is only a matter of time,” the analyst said, adding:
As of Sept. 23, Bitcoin’s dominance was 57.4%, 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 58.6%
may 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 Moustache
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
Still, it’s not yet time to celebrate, as the altcoin season index by Blockchain Center indicates that the “altseason” has not yet arrived. According to this index:
Despite the compelling technicals, it may 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, indicating 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.