In recent weeks, a wave of bullish momentum has surged across various altcoins, prompting several analysts to suggest the initiation of an altseason. This shift is anticipated to lead to a substantial price surge in the upcoming weeks. Notably, the well-regarded analyst EGRAG Crypto has contributed to this dialogue, projecting a potential market influx of $627 billion.
Bitcoin Dominance Set to Decline by 33% as Altcoins Gain Momentum
EGRAG Crypto, in a recent post on platform X, shared insightful projections regarding the prospective growth of altcoins as the altseason unfolds. Utilizing the Volume Range Visible Profile (VRVP) as an analytical tool, the analyst examined Bitcoin’s trading activity across different dominance levels. This tool helps identify crucial support and resistance zones based on trading volume.
To provide context, an altseason is a phase where altcoins drastically outperform Bitcoin in terms of price increase. This period is marked by a drop in Bitcoin’s market share as capital shifts towards other cryptocurrencies.
According to EGRAG Crypto, Bitcoin’s dominance is trending below its Value Area High (VAH), the upper boundary where significant trading activity occurs, currently acting as a resistance zone. This scenario spells a promising future for altcoins, indicating mounting selling pressure on Bitcoin, potentially diminishing its dominance over other assets. The Value Area Low (VAL), the lower boundary of significant trading activity, is expected to serve as a support level for Bitcoin dominance during this altseason.
The analysis indicates that Bitcoin’s dominance might reduce by 33.04% if it hits its Value Area Low. Given Bitcoin’s current market cap of $1.91 trillion, this could translate to altcoins experiencing fresh inflows amounting to $627 billion in the near future.
Moreover, EGRAG Crypto forecasts that Bitcoin Dominance will aim for a Point of Control (POC) target of 42% during this altseason. The POC signifies a critical price or dominance level with the highest trading volume. A decline below this point would affirm a market interest shift from Bitcoin towards other cryptocurrencies.
Ethereum’s Role in Leading the Altseason Charge
Adding to the expert opinions on altseason, analyst Michaël Van de Poppe has noted the impressive price performances of altcoins over the past month. He further asserts that if Ethereum (ETH), the largest altcoin by market cap, surpasses the 0.035 mark on the ETH/BTC chart in November, it will signal a robust bullish phase for altcoins in December.
At present, the altcoin market is valued at approximately $1.39 trillion, constituting 41.4% of the total cryptocurrency market cap. This statistic underscores the significant role altcoins are playing in reshaping the market landscape, making them a focal point of interest for investors and traders alike.
In conclusion, as the altseason progresses, the shifting dynamics between Bitcoin and altcoins are poised to redefine the cryptocurrency market. Investors should keenly observe these trends to capitalize on the evolving opportunities within this vibrant digital asset space.
