Altcoins have shown considerable strength following Bitcoin’s recent recovery over the past month, leading analysts to suggest that the market may be on the brink of an altcoin season.
“The past few days have been very bullish for many #Altcoins!” said ParabolicPump, co-founder of Crypto Capital, in a Sept. 23 post on X.
Popular trader 360Trader noted that TOTAL3, which represents the total crypto market capitalization excluding BTC and ETH, had retested the upper boundary of a falling channel.
Although this crucial level has suppressed prices since March 2024, a decisive close above it would confirm a “nail in the coffin for bears,” they stated.
According to ParabolicPump, as altcoin prices rally, Bitcoin’s dominance is nearing a downside break from its rising wedge. “It is only a matter of time,” the analyst pointed out, adding: “Every bull run in crypto had a phase where Bitcoin dominance dropped to the downside significantly.”
As of Sept. 23, Bitcoin’s dominance stands at 57.39%, down 1.09% over the past week, according to data from Cointelegraph Markets Pro and TradingView. Traders often watch for signs that Bitcoin dominance is peaking as an indicator to sell BTC and invest in alternative coins.
Popular analyst Nebraskangooner suggested that Bitcoin’s recent rise to 58.61% may have marked the top for this metric, as a bearish divergence in the relative strength index (RSI) signaled a weakening market structure for BTC.
Meanwhile, pseudonymous analyst Moustance noted that TOTAL2, representing altcoins’ total market cap excluding BTC, is breaking out of a descending broadening wedge that has been active for six months.
Moustache explained that the optimistic outlook for altcoins is bolstered by the RSI breaking out of a downward trend, along with an impending bullish cross from the moving average convergence divergence indicator.
“A god candle like we haven’t seen for years is loading, in my opinion,” they stated.
However, the altcoin season index by Blockchain Center indicates that an altseason has not yet arrived. According to this index: “If 75% of the top 50 coins performed better than Bitcoin over the last season (90 days), it is the Altcoin Season.”
Despite the compelling technicals, it may still be premature to conclude that an altcoin season has begun, as only 39% of the leading 50 altcoins have outperformed Bitcoin in the last 90 days. Since the index is below 75, it suggests that it is not yet altcoin season.
