According to several crypto analysts, altcoins are exhibiting a notable breakout, hinting at a potential shift toward an altcoin-dominated market phase.
Analysts observed that the total market capitalization of altcoins is rising, breaking out of longstanding downward trends. Technical and on-chain analyst Ali Martinez noted that while it’s uncertain if a full-blown altcoin season has arrived, the current developments represent a promising start.
Analyst Caleb Franzen shared insights that altcoins measured through TradingView indexes like TOTAL.3 and OTHERS have surpassed significant moving averages, specifically the 100-day and 200-day exponential moving averages (EMAs). Franzen highlighted that the last such breakout occurred in July 2023, during which altcoins used these EMAs as dynamic support to achieve higher highs. He emphasized the importance of monitoring daily closes to confirm this trend.
Negentropic also pointed out the cyclical nature of the crypto market, suggesting that altcoins typically follow Bitcoin’s bullish momentum, often entering a vigorous phase once Bitcoin breaks its all-time high and moves into uncharted territory. The analysis indicates that after several instances since May where Bitcoin surged without triggering an altcoin season, current indicators show a simultaneous uptick in both Bitcoin and altcoin markets.
The Bitcoin-Altcoin Cycle chart from Swissblock Technologies illustrates this relationship. The chart depicts the inverse dynamics between Bitcoin and altcoin seasons throughout the year. When the Altcoin Season Index is high, Bitcoin’s dominance tends to be lower, and vice versa. Currently, the index suggests that altcoins are gaining strength alongside Bitcoin rather than lagging behind as in previous cycles.
Bitcoin season dwarves altcoins so far in 2024
Despite these positive signs, it’s important to consider the broader market context. Over the past nine…
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