With Bitcoin hitting its lowest price and its dominance in the crypto market falling, analysts are suggesting that the altcoin season is set to start any day now. A recent analysis by leading crypto experts has identified a key pattern that might signal a big shift in the cryptocurrency landscape. Here’s what you need to know.
Altcoins Poised for a Breakout?
In a recent tweet post, well-known crypto trader Captain Faibik pointed out the formation of a rising wedge in Bitcoin’s dominance on the weekly timeframe chart. This technical pattern often indicates a potential reversal or breakdown in the market trend. According to Faibik, the real altcoin surge will begin once Bitcoin dominance breaks down from this rising wedge formation. However, the rising wedge is typically a bearish signal, suggesting that Bitcoin’s dominance might be weakening soon. This potential breakdown could set the stage for a substantial shift, where altcoins gain traction and attract more investment.
Rare Buy Signal for Altcoins
Aligning similarly with the Faibik analysis, prominent crypto analyst Mikybull Crypto highlighted a rare buy signal that has just appeared in the altcoin dominance chart. Mikybull Crypto noted, “Altcoins dominance showing good strength after the rare buy signal flashed on. This is the first time it has appeared on that macro capitulation channel since 2016. Q4 is looking primed for Alts season.” This signal is crucial because it’s the first of its kind to appear on the macro capitulation channel since 2016. This rare event indicates that altcoins are showing strong potential and may be gearing up for a major move. If past trends continue, we might see altcoins outperform Bitcoin and other major cryptocurrencies in the fourth quarter, setting the stage for a possible altcoin season.
Metric Shows Altcoin Season Delay
As per the Blockchaincenter report, the altcoin season is still a long way off, with a score of just 27. The target to start the season is a 75% mark, which is far from being reached. However, some altcoins have shown impressive growth recently. For example, the Sun Token (SUN) has surged by 187.63% in the past 90 days. Additionally, TON’s Notcoin (NOT) has risen by 131.71% this season.
