Altcoins have demonstrated notable resilience during Bitcoin’s recent recovery, prompting analysts to speculate that we may be approaching an altcoin season.
In a post on X dated September 23, ParabolicPump, co-founder of Crypto Capital, remarked, “The past few days have been very bullish for many #Altcoins!”
Trader 360Trader pointed out that TOTAL3, which represents the total cryptocurrency market capitalization excluding Bitcoin (BTC) and Ether (ETH), has recently tested the upper limit of a declining channel. Despite this critical level having resisted price movements since March, a solid close above it could serve as a “nail in the coffin for bears,” according to the trader.
Source: 360Trader
ParabolicPump further noted that as altcoin prices surge, Bitcoin’s dominance appears ready to break downward from its rising wedge. “It is only a matter of time,” the analyst stated. As of September 23, Bitcoin’s dominance stood at 57.4%, reflecting a 1.09% decline over the past week, based on data from Cointelegraph Markets Pro and TradingView.
Traders commonly look for indicators suggesting that Bitcoin’s dominance may have peaked as a signal to divest from BTC and shift their investments into alternative coins. Analyst Nebraskangooner indicated that the recent climb of Bitcoin dominance to 58.6% might represent a peak, as a bearish divergence in the relative strength index (RSI) suggested a weakening market structure for BTC.
Altcoin market capitalization. Source: Moustache
In another observation, the pseudonymous analyst Moustache noted that TOTAL2, which reflects the total market capitalization of altcoins excluding BTC, is on the verge of breaking out from a descending broadening wedge that has persisted for the last six months. Moustache highlighted that the positive outlook for altcoins is bolstered by the RSI breaking free from a downward trend and an imminent bullish crossover on the moving average convergence divergence indicator.
In a subsequent post, the analyst expressed optimism, stating that charts and on-chain data indicate the market is poised for “the biggest bull run since 2017.”
Related: RSI suggests classic BTC price breakout — 5 things to watch in Bitcoin this week
However, it may be premature to celebrate, as the altcoin season index from Blockchain Center suggests that the “altseason” has not yet commenced. The index reveals that, despite the promising technical indicators, it might still be too early to declare the arrival of an altcoin season. The accompanying chart shows that only 39% of the top 50 altcoins have outperformed Bitcoin over the last 90 days, signaling that we are not yet in an altcoin season.
Altcoin season index. Source: Blockchain Center
This article does not provide investment advice or recommendations. All investment and trading activities carry risks, and readers should perform their own research before making any financial decisions.