As Bitcoin reaches its low price and its dominance in the cryptocurrency market decreases, one analysts believe that an altcoin season may be about to begin.
Altcoins ready for a breakout?
The well-known crypto trader, Captain Faibik noted in a tweet the formation of a rising wedge in Bitcoin’s dominance on the weekly chart.
This technical pattern often suggests a possible reversal or breakdown in market trends, and now, this could be the altseason.
$BTC (Dominance) Rising Wedge formation on the Weekly TF Chart.
The Real Altcoins Party will start once Dominance Breaks down from the Rising wedge.
So Keep Accumulating the Altcoins for the Midterm/Longterm & just Hold with the Patience.#Crypto #Altcoins #Bitcoin pic.twitter.com/DTc8UBTroo
— Captain Faibik 🐺 (@CryptoFaibik) September 8, 2024
Faibik believes that the real surge for alts will start once Bitcoin’s dominance breaks below this rising wedge.
Since a rising wedge is usually a bearish signal, it implies that Bitcoin’s dominance may weaken soon.
If this breakdown occurs, it could create an opportunity for alts to gain momentum and attract more investment.
Buy signal for altcoins, this time for real?
In line with Faibik’s analysis, another crypto analyst, Mikybull Crypto also pointed out a rare buy signal that appeared in the altcoin dominance chart.
$BTC (Dominance) Rising Wedge formation on the Weekly TF Chart.
The Real Altcoins Party will start once Dominance Breaks down from the Rising wedge.
So Keep Accumulating the Altcoins for the Midterm/Longterm & just Hold with the Patience.#Crypto #Altcoins #Bitcoin pic.twitter.com/DTc8UBTroo
— Captain Faibik 🐺 (@CryptoFaibik) September 8, 2024
This signal is important because it is the first of its kind to emerge on the macro capitulation channel since 2016. This suggests that alts are showing strong potential and may be preparing for a significant upside movement.
If historical trends hold true, altcoins might outperform even Bitcoin and other major cryptocurrencies in Q4, paving the way for a potential altseason.
Long waiting for the gains
Blockchaincenter’s new report tells that the altseason is still not imminent, with a score of only 27. The threshold to kick off the season is a score of 75%, which is still very, very far from being achieved.
But despite this, some altcoins indeed demonstrated impressive growth in the past weeks or months.
Sun Token surged by 187.63% over the past 90 days, while TON’s Notcoin increased by 131.71% this season.
As Bitcoin’s dominance continues to decline and altcoins show signs of relative strength, we may soon see a shift in investor focus towards altcoins.
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