Traders Perspective: Altcoin Season Is Ready With These 3 Signals
Experienced traders in the market and some indicators are suggesting that Altcoin season will kick off when Bitcoin (BTC) makes a new ATH.
Altcoins have been in a long bear market since March 2024, however, some key indicators suggest that the current recovery will be the start of a strong move ahead.
From a technical analysis perspective, Altcoin capitalization has maintained a long-term uptrend since 2017, if viewed on the TOTAL2 chart.
Retesting the support line is an indicator that selling pressure has eased, and buying at the current level could push Altcoin prices higher.
If BTC breaks, the market seems ready for a major price movement - shared by Mags, a famous trader on X.
At the time of writing, BTC price has broken through the ATH of 2021 at $69K. If BTC continues to hold its price and closes positively, TOTAL2 will benefit greatly.
In agreement, trader Moustache notes the breakout of BTC from the descending wedge since Q2/2024. Moustache believes that in the next 1-2 weeks, TOTAL2 will likely pump, and nothing can stop it.
According to this trader, the recent 11% drop of TOTAL2 from $981 billion to $873 billion is just a 'discrepancy' compared to the overall trend. It's like a 'small storm' against a large flow.
One factor to consider is Bitcoin Dominance (BTC.D). BTC.D has increased significantly since the beginning of 2023, reaching a 3.5-year high of 59.75.
Anonymous trader Yoddha believes that BTC.D may be compressed within an ascending wedge, signaling a potential reversal that could happen at any moment.
However, until Dom actually breaks, the overall Altcoin market remains quite 'weak'. According to data from Blockchain Center, only 29% of the top 50 altcoins have risen stronger than BTC.
For the Altcoin season to truly occur, this number must be 75%. Be patient and wait in the coming period to see the overall trend of both Bitcoin and Altcoin.
