Is crypto ‘altseason’ coming? Watch for these 3 key signs in the coming months
The altcoin market has been on a downward spiral since hitting a trap in the 2024 bull run in March, but several key indicators suggest that the recent recovery could be a sign of “big moves” ahead, according to crypto analysts.
Are altcoins ready to take off?
From a technical perspective, the altcoin market setup shows strength as it holds above the upward trend that supports TOTAL2 – the total market capitalization of all cryptocurrencies since the bull cycle of 2017.
“The altcoin market price is currently testing the support of a long-term trend that has been strong for the past eight years,” independent crypto analyst Mags announced on October 26 at X.
A retest of this multi-year support line is an indicator that the downtrend is easing, and increased buying from current levels could boost altcoin prices.
“With BTC also collapsing, the market looks set for a big move,” the analyst added.
“It's time to send it up.”
At the time of publication, Bitcoin price was battling resistance from its 2021 all-time high near $69,000.
If BTC price makes a critical close above this level and TOTAL2 holds long-term trendline support, it could signal that the market is poised for a significant move higher.
Altcoin market capitalization. Source: Mags
Fellow analyst Mustache, meanwhile, watched as he watched the flash from the wide wedge.
“I think TOTAL2 will see an inevitable breakout of the 7.5-month bearish wedge in the next 1-2 weeks,” Mustache explained in an Oct. 26 post on X.
According to Mustache, the 11% decline in TOTAL2 from October 21 to October 25, from $981 billion to $873 billion, is likely only as it struggles to reclaim the price line that has served as a support since September 26.
“Monster pump too late for altcoins.”
TOTAL2 Daily Chart. Source: Beard
It's still Bitcoin season.
Bitcoin dominance—a metric that measures Bitcoin's market share relative to the overall crypto market—is one of the commonly used indicators to signal the start of an altseason. For traders, it could jeopardize overall investor sentiment and appetite in the market.
This indicator has been on an upward trend since early 2023, reaching a three-and-a-half-year high of 59.75 on October 25.
At the time of publication, the dominance of BTC is maintaining a growth of 59.56%, which indicates that it is still “Bitcoin season”.
Bitcoin market dominance. Source: TradingView
Popular crypto YouTuber Crypto Banter's “parabolic” altseason phase comes once Bitcoin's dominance declines significantly.
Anonymous crypto analyst Yodada says that Bitcoin's dominance could be “squeezing” in an upward wedge, indicating that an altcoin rally is coming soon.
Source: Yodada
Another analyst, Crypto Rover, said in an Oct. 28 post that “Bitcoin's supremacy is about to collapse.” “Alteason is imminent.”
Meanwhile, the current dominance of Bitcoin means that altcoins are still underperforming BTC.
According to data from the Blockchain Center, only 29% of 50 altcoins have outperformed BTC in the past three months, far short of the 75% required to earn an official “altszn”.
Altcoin period index. Source: Blockchain Center
With Bitcoin challenging new highs, market participants can watch for a potential crash in TOTAL2 market cap, reducing Bitcoin dominance and boosting the Altcoin Season Index, which if aligned could signal the start of an altcoin season in the coming months. .
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.
