Altcoins have been bullish over the past month, following Bitcoin’s recent recovery, leading analysts to suggest that the market could be on the verge of altcoin season.
“The last few days have been extremely bullish for many #Altcoins!” ParabolicPump, co-founder of Crypto Capital, said in a post to X on September 23.
Popular trader 360Trader observed that TOTAL3, the total cryptocurrency market cap excluding BTC and ETH, has retested the upper boundary of the descending channel.
This key level has held prices in check since March 2024, but a decisive close above it would almost certainly “put the nail in the coffin for the bears,” they said.
source: 360 Trader
According to ParabolicPump, Bitcoin’s dominance is on the verge of a bearish breakout from the rising wedge as altcoin prices continue to rally. “It’s only a matter of time,” the analyst notes, adding:
“Every bull market in cryptocurrencies has had a phase where Bitcoin dominance has declined significantly.” Bitcoin dominance 2-week chart. Source: ParabolicPump
According to data from Cointelegraph Markets Pro and TradingView, as of September 23, Bitcoin’s dominance was 57.39%, down 1.09% from last week.
Traders often see Bitcoin’s dominance peaking as a sign that investors are selling BTC and moving capital into other coins.
According to renowned analyst Nebraskangooner, this indicator may have reached its all-time high as Bitcoin’s dominance has recently increased to 58.61%. The downtrend in the Relative Strength Index (RSI) is a sign that BTC’s market structure is weakening.
Altcoin Market Cap. Source: mustache
Meanwhile, anonymous analyst Maustons observed that TOTAL2, the market cap of all altcoins except BTC, is breaking out of the expanding wedge of a downtrend that has been going on for the past six months.
Moustache explained that the RSI breaking out of its downtrend and the imminent bullish crossover of the Moving Average Convergence Divergence indicator support the bullish outlook for altcoins.
“I think the God’s candle is loading, which I haven’t seen in years.” Altcoin market cap. Source: Mustache
In a follow-up post, the analysts said charts and on-chain data show the market is “on track for its biggest bull run since 2017.”
relevant: RSI hints at a classic BTC price breakout: 5 things to know about Bitcoin this week
But it’s not time to celebrate yet, according to Blockchain Center’s altcoin season index, which indicates that altseason is yet to come. According to the index:
“If 75% of the top 50 coins outperformed Bitcoin over the last 90 days, it’s an altcoin season.”
Despite the compelling technical facts, it is still too early to conclude that altcoin season has begun. The chart below shows that only 39% of the top 50 altcoins have outperformed Bitcoin over the past 90 days. The index is below 75, indicating that altcoin season is not yet underway.
Altcoin Season Index. Source: Blockchain Center
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.