A key altcoin’s seasonal indicator is when Bitcoin’s dominance increases in accumulation mode
The altcoin market is currently in a “regrouping phase”, which may move to the “second leg of the cycle” after returning to a key support area, according to crypto traders.
“Altcoins are up just 58% since opening after 525 days of inventory,” independent crypto trader Mags said in part in a July 25 article posted on X.
The level of accumulation occurs when the market goes down, and when the prices reach the lowest level in the area, it is reflected in the 33% drop of TOTAL2 (total market capitalization, excluding Bitcoin) since March 11. This is a time of relative stability. , where investors buy on dips in anticipation of future price increases.
Mags shared the following chart showing that despite this correction, altcoins are up 58% since their long-term rally, suggesting there is still plenty of room to move higher.
“This setback is probably just a regrouping before another leg.”
Data from crypto-tracking platform Bitformance shows that over the past three months, the top 200 equal-weighted index — which assigns weight to cryptocurrencies equally regardless of market value — has fallen more than 55% in terms of market capitalization. .
The decline indicates that smaller cryptocurrencies have underperformed bitcoin, suggesting that the altcoin era is yet to materialize.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin (BTC) is up 6 percent over the same three-month period.
Meanwhile, crypto YouTuber Crypto Rover pointed out that while it's not yet the altcoin season, Bitcoin's dominance is at “peak territory,” giving altcoin investors an opportunity to “collect.”
Bitcoin's dominance – its market share relative to the rest of the crypto market – indicates that the broader market has shifted away from altcoin capital.
According to TradingView data, Bitcoin dominance has reached a multi-year high, currently at 56.56%, up 3% over the past 90 days.
Related: Bitcoin ‘Trump pump' potential matches key technical signal – Can BTC break $71.5K?
Altcoins are set for the “second leg” of the cycle
Independent trader Jelle shared the TOTAL3 (total market capitalization of all cryptocurrencies) on his weekly chart and indicated that the price “successfully” recovered a key support area.
The analyst pointed to a range between $600 billion and $625 billion as TOTAL3 bounced back from support resistance as bitcoin recovered from multi-month lows below $54,000.
“The event is coming to an end. The second leg of the cycle is fast approaching.
Fellow Musta shared the same sentiment, seeing the altcoin market retesting a key 2023 support area before reaching its March 2024 peak.
“The most exciting time of the cycle is just around the corner.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
