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Cryptocurrency analysts anticipate the upcoming "altcoin season," a phase in the cryptocurrency market where the value of small-cap cryptocurrencies soars, signaling a potential shift in the ongoing Bitcoin bull market.
Renowned trader and analyst "Rekt Capital" highlighted the resilience of altcoin market capitalization in observations published on April 11. Despite significant fluctuations in Bitcoin prices in recent weeks, altcoins have remained stable around the $315 billion mark.
This stability has piqued the interest of cryptocurrency traders who are focusing on the altcoin market, seeking potential higher-risk return opportunities. Social media user "Crypto Signals" stated:
"In the volatility of Bitcoin, altcoins have shown remarkable resilience. They're like a reliable friend, standing firm through thick and thin, holding onto $315 billion."
Altcoins Not Yet in the Expected Stage
Traditionally, the price movements of altcoins tend to lag behind Bitcoin, and indicators like altcoin market capitalization and Bitcoin dominance signal the beginning of an altcoin bull market.
However, despite the optimism, it's worth noting that altcoins have not fully entered this expected stage yet. While Bitcoin remains close to its all-time high of over $70,000, most altcoins have experienced corrections since their peak in mid-March.
Potential Reversal?
A key indicator under scrutiny is Bitcoin's dominance chart, which has remained above 50% since September 2023, currently standing at 54.5%.
Analyst "Crypto Nova" explains that the transitional period of Bitcoin dominance foreshadows when altcoins will start shining, although this shift has not yet materialized. Observations of sideways movement on the charts suggest a potential reversal is forming.
Forecasts for the upcoming altcoin season come from technical analyst "Crypto Titan," who emphasizes the importance of the Ichimoku indicator, which could catalyze this shift by hindering Bitcoin's dominance. They state:
"Just like in 2021, the SSB (Senkou Span B) is Ichimoku's strongest line, and it will play a crucial role in halting Bitcoin's dominance, thus initiating the 2024 altcoin season."
Similarly, analyst Kevin Svenson points out the historical trend that narratives favoring altcoins often emerge after Bitcoin halvings, implying a favorable environment for altcoin surges.
It's worth noting that while outliers like Toncoin (TON) have recently reached all-time highs, many high-cap altcoins, including Ripple, Dogecoin, Cardano, Avalanche, Bitcoin Cash, Polkadot, and Chainlink, still lag far behind their peak prices since 2021, with Bitcoin showing relatively minor deviations from its all-time high. |
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Post time 19-4-2024 10:37:28