Market analysts are predicting that the highly anticipated “altseason” in the cryptocurrency market could be just around the corner. Despite the recent volatility in Bitcoin’s price, the altcoin market capitalization has remained steady, consistently testing the $315 billion support level. This has caught the attention of crypto traders who are expecting smaller-cap cryptocurrencies to surge during the next phase of the bull market.
In the past, altcoin prices have typically lagged behind Bitcoin, but certain indicators such as the altcoin market capitalization and Bitcoin dominance can provide signals of when altcoins might enter their own bull season. However, altcoins have not yet reached that point. While Bitcoin remains close to its all-time high, most altcoins have experienced corrections since their mid-March highs.
Analysts are now closely watching the Bitcoin market dominance chart, which has remained above 50% since September 2023 and currently stands at 54.5%. According to analyst ‘Crypto Nova,’ the shift in Bitcoin dominance is a key indicator for when altcoins truly start to shine. Although this shift has not occurred yet, the chart is showing sideways movement, which often precedes a reversal.
Technical analyst ‘Titan of Crypto’ also believes that another altseason is on the horizon. They referred to the Ichimoku technical indicator, which they believe will play a significant role in reducing Bitcoin dominance and initiating the altseason. Additionally, analyst Kevin Svenson predicts a massive bull run for the altcoin market cap, noting that the narrative often shifts towards altcoins after Bitcoin’s halving event.
Currently, altcoins are trading mostly flat, with the total crypto market capitalization hovering around $2.74 trillion. While some outliers like Toncoin have recently reached all-time highs, most high-cap altcoins are still significantly down from their peak prices in 2021. XRP, Dogecoin, Cardano, Avalanche, Bitcoin Cash, Polkadot, and Chainlink are all down by at least 60% from their peaks, while Bitcoin has only experienced a less than 5% decline from its all-time high.
In related news, it has been reported that one in six new Base memecoins are scams, with 91% of them having vulnerabilities, highlighting the need for caution in the cryptocurrency market.