As Bitcoin Struggles, Speculation Grows: Has Altcoin Season Begun?
With Bitcoin unable to break past $60,000 and facing resistance, analysts are now considering the possibility of altcoin season beginning.
Bitcoin’s Dominance Decline
Currently, Bitcoin’s dominance stands at 56.91%, showing a downward trend after failing to break through a rising wedge on August 5. This failure to break out is seen as a bearish sign, indicating a potential decline in Bitcoin’s dominance. As Bitcoin loses its grip, altcoins have a chance to gain market share. The rise of TOTAL2 since August 5 further supports this notion.
Analysts like Chris AI have highlighted Bitcoin’s inability to break out of the wedge, signaling a potential rollover in the near future. SenseiBR mentioned the possibility of BTC.D forming an ending diagonal pattern, hinting at a shift in market sentiment and a surge in altcoin activity.
Altcoin Seasonal Index: A Checkpoint
While speculation is rife, the altcoin season officially starts when more than 75% of the top 50 altcoins outperform Bitcoin over the past 90 days. Currently, only 14 altcoins, or 28%, have achieved this milestone, indicating that the altcoin season may not have fully kicked off yet.
Additionally, the TOTAL2 trend is currently within a horizontal channel on the daily chart, suggesting balance between buying and selling pressure. The altcoin season will truly kick off once TOTAL2 breaks out of this channel, confirming stronger momentum and signaling a shift away from Bitcoin’s dominance.
Looking Ahead: The Potential for Altcoins
With Bitcoin’s dominance potentially on the decline and altcoin season looming, investors are keeping a close eye on market dynamics. The coming weeks will be crucial in determining whether altcoins can outshine Bitcoin and pave the way for a broader market rally.
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