While the recent surges of some altcoins could signal the first stages of this new trend, this analysis seeks to focus even more on the charts of Bitcoin dominance and total altcoin market capitalization.
Bitcoin Falls, Altcoins Advance!
To validate an altcoin season, at least 75% of the top 100 cryptocurrencies must outperform BTC in 90 days. This hasn’t happened in the past six months, as Bitcoin’s dominance has made altcoins play second fiddle.
However, according to the Blockchain Center, things are gradually starting to change. The altcoin season index rose from less than 18 a few weeks ago to 31. This increase could be related to the performance of cryptocurrencies such as Sui (SUI), Bittensor (TAO), Fantom (FTM) or even SEI (SEI).
Despite the recent improvement, it is important to note that we are not yet enjoying altcoin season. This, even as Bitcoin’s (BTC.D) dominance has declined since September 19.
In addition, the TOTAL2 graph, which shows the total market capitalization of the crypto market (without BTC), is constantly increasing. It is up 18% since September 7th. Taken together, these indications suggest that Bitcoin could soon be replaced by altcoins.
Additionally, BeInCrypto noticed that TOTAL2 just broke a bearish wedge. Even if the wedge is descending, this is a bullish chart pattern. Hence, breaking the bullish wedge is positive for other cryptocurrencies.
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A break of this technical pattern indicates that sellers are starting to lose momentum. On the other hand, buyers are proving to be increasingly strong. If the trend continues, the total market cap of altcoins could jump to $1.3 trillion or even $1.5 trillion within a few months.
Analysts have announced altcoin season
Following this development, several crypto analysts agreed that the season of altcoins is very close. For example, the Negentropic account on X, run by Glassnode and Swissblock founders Jan Happel, Rafael Schultze-Kraft and Yann Allemann, shares a similar opinion.
“Swissblock’s Altcoin Signal is at 53: We’re Entering AltSeason! When BTC crosses 64.4k, altcoins will rise. For example, WIF is strong, up over 16% today. This move is expected to intensify as Bitcoin reaches new ATHs,” Negentropic said.
Miles Deutscher is another cryptanalyst who is rather bullish on this issue. According to Deutscher, TOTAL3, which is the market capitalization of other cryptocurrencies excluding Ethereum (ETH), could rise sharply if it is not hit by the rejection.
“Altcoins (3 TOTAL) are on the brink of a monstrous breakout. There’s a chance we’ll get rejected here, but if we get past this level, expect fireworks,” Deutscher wrote.
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If this breakthrough is successful, then the altcoin season could accelerate and really kick off. However, it is key to watch the dominance of BTC (BTC.D). If the latter rebounds, it could be a bad sign for altcoins. As a result, we would probably have to wait even longer.
Moral of the story: in cryptocurrencies, the changing of the seasons is not fixed every three months.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult with an expert before making any financial decision.