Technical charts suggest that a roaring altseason may be ahead: analysts
Crypto's infamous “altseason,” the period of bull markets when small capital improvements in cryptocurrencies soar, may be coming soon, according to market analysts.
On April 11, trader and analyst Rect Capital noted that despite Bitcoin's (BTC) price whiplash over the past few weeks, the altcoin's market value is “the only constant.” It has been continuously testing the $315 billion level as support for weeks, he said.
Crypto traders have been keeping a close eye on the altcoin markets because they represent high exposure to rewards that many expect to add to the next bull market phase.
Historically, altcoin price appreciation has lagged Bitcoin, and charts like altcoin market capitalization and Bitcoin dominance can give traders some indication of when altcoins may enter their own bull season.
However, altcoins don't exist yet. Following highs in mid-March, most altcoins have corrected, while BTC remains close to its high above $70,000.
Analysts are looking at the Bitcoin market dominance chart with renewed interest, which has been over 50% since September 2023 and currently stands at 54.5%.
According to analyst Crypto Nova, the transition between the rise and fall of Bitcoin's dominance is when “altcoins really start to shine.”
That hasn't happened yet, but “there are no more strong highs and highs and lows,” she said.
Technical analyst Titan of Crypto echoed his sentiments in a post on X last week, saying, “I personally believe there will be another Alceson.”
The analyst cited the Ichimoku technical indicator as saying, “It will play a major role in starting the altseason by closing Bitcoin's dominance.”
Meanwhile, analyst Kevin Svensson told his 140,000 followers in a post on X earlier this week that the altcoin market is “set for a massive bull run.” “People often forget… that's when the narrative changed to alt after the Bitcoin halving,” he added.
Related: Altseason is coming — or at least the data suggests it's close
Altcoins are trading flat on the day as the total crypto market capitalization remains around $2.74 trillion.
In addition to foreign markets such as Toncoin (TON), which recently reached an all-time high, most large-cap altcoins are down significantly from their 2021 highs.
XRP (XRP), Dogecoin (DOGE), Cardano (ADA), Avalanche (AVAX), Bitcoin Cash (BCH), Polkadot Dot (DOT) and Chainlink (LINK) are down at least 60% from their peaks, while Bitcoin is less. It's down more than 5% from its all-time high.
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