bullish

Bitcoin

when

Altcoins have displayed strength amid Bitcoin’s recovery over the past month, leading analysts to suggest that the market might be on the brink of an altcoin season.
“The past few days have been very bullish for many #Altcoins!” ParabolicPump, co-founder of Crypto Capital, <a data-ct-non-breakable="null" href="https://x.com/ParabolicPump/status/1838252263338656170" rel="null" target="null" text="null" title="null">said</a> in a Sept. 23 post on X.&nbsp;
Popular trader 360Trader <a data-ct-non-breakable="null" href="https://x.com/360_trader/status/1838214703853470191" rel="null" target="null" text="null" title="null">observed</a> that TOTAL3, the total crypto market capitalization excluding Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) and Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="null" target="null" text="null" title="null">ETH</a>), has retested the upper boundary of a falling channel.&nbsp;
Although this crucial level has suppressed the price since March, a decisive close above it would confirm a “nail in the coffin for bears,” the trader said.
<figure>
 <img alt="Drop in Bitcoin dominance and bullish altcoin market structure have traders predicting ‘altseason’" name="" src="https://s3.cointelegraph.com/uploads/2024-09/019220b8-d349-7e13-99cd-bc29a00df277">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/360_trader/status/1838214703853470191" rel="null" target="null" text="null" title="https://x.com/360_trader/status/1838214703853470191">360Trader</a>
 </figcaption>
</figure>
According to ParabolicPump, as altcoin prices have rallied, Bitcoin’s dominance is on the verge of a downside break from its rising wedge. “It is only a matter of time,” the analyst said, adding:
<blockquote>
 “Every bull run in crypto had a phase where Bitcoin dominance dropped to the downside significantly.”Bitcoin dominance two-week chart. Source: ParabolicPump
</blockquote>
As of Sept. 23, Bitcoin’s dominance was 57.4%, down 1.09% over the past week, according to data from <a data-ct-non-breakable="null" href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA.." rel="null" target="null" text="null" title="null">Cointelegraph Markets Pro</a> and <a data-ct-non-breakable="null" href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" rel="null" target="null" text="null" title="null">TradingView</a>.
Traders often look for signs that <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-dominance-declines-altcoins-may-start-upswing-analyst" rel="null" target="null" text="null" title="null">Bitcoin dominance is peaking</a> as a signal for investors to sell BTC and rotate their capital into alternative coins.&nbsp;
According to popular analyst Nebraskangooner, Bitcoin dominance’s recent <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-dominance-hits-58-amid-altcoin-stock-market-bloodbath" rel="null" target="null" text="null" title="null">rise to 58.6%</a> may have marked the top for this metric as a bearish divergence from the relative strength index (RSI) signaled a weakening market structure for BTC.
<figure>
 <img alt="Drop in Bitcoin dominance and bullish altcoin market structure have traders predicting ‘altseason’" name="" src="https://s3.cointelegraph.com/uploads/2024-09/019220be-64ea-7db9-9a8b-c260747878d7">
 <figcaption style="text-align: center;">
 Altcoin market capitalization. Source: <a data-ct-non-breakable="null" href="https://x.com/el_crypto_prof/status/1838144482811728085" rel="null" target="null" text="null" title="https://x.com/el_crypto_prof/status/1838144482811728085">Moustache</a>
 </figcaption>
</figure>
Meanwhile, pseudonymous analyst Moustache <a data-ct-non-breakable="null" href="https://x.com/el_crypto_prof/status/1838144482811728085" rel="null" target="null" text="null" title="null">observed</a> that TOTAL2, the altcoins’ total market cap excluding BTC, was in the process of breaking out of a descending broadening wedge that has been in play for the past six months.
Moustache explained that the optimistic outlook for altcoins was supported by the RSI breaking out of a downward trend and an impending bullish cross from the moving average convergence divergence indicator.
<blockquote>
 “A god candle like we haven’t seen for years is loading, in my opinion.”Altcoin market capitalization. Source: Moustache
</blockquote>
In a follow-up post, the analysts <a data-ct-non-breakable="null" href="https://x.com/el_crypto_prof/status/1838221352685220011" rel="null" target="null" text="null" title="null">said</a> charts and onchain data show that the market is going to “see the biggest bull run since 2017.”
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/rsi-classic-btc-price-breakout-5-things-bitcoin-this-week" rel="null" target="null" text="null" title="null">RSI hints at classic BTC price breakout — 5 things to know in Bitcoin this week</a>
Still, it’s not yet time to celebrate, as the altcoin season index by Blockchain Center indicates that the “altseason” has not yet arrived. According to this index:
<blockquote>
 “If 75% of the top 50 coins performed better than Bitcoin over the last season (90 days), it is the Altcoin Season.”
</blockquote>
Despite the compelling technicals, it may still be too early to conclude that an altcoin season has begun. The chart below shows that only 39% of the leading 50 altcoins have outperformed Bitcoin in the last 90 days, indicating that it is not yet altcoin season.
<figure>
 <img alt="Drop in Bitcoin dominance and bullish altcoin market structure have traders predicting ‘altseason’" name="" src="https://s3.cointelegraph.com/uploads/2024-09/019220c1-4828-7b09-8ed0-ec1684173eac">
 <figcaption style="text-align: center;">
 Altcoin season index. Source: Blockchain Center
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Drop in Bitcoin dominance and bullish altcoin market structure have traders predicting ‘altseason’

Cointelegraph

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