With Bitcoin (BTC) failing to break out of its uptrend, many are speculating whether altcoin season has arrived. As Bitcoin struggles to overcome resistance near $60,000, analysts are pointing towards a potential shift in market dynamics.
Bitcoin’s Dominance Trend
Bitcoin dominance (BTC.D) currently stands at 56.91%, showing a downward trend since failing to break above a rising trend line on August 5. This failure to break out is considered bearish, indicating a potential decline in Bitcoin’s dominance. As Bitcoin’s grip weakens, altcoins are poised to make gains, as evidenced by the rise of TOTAL2 since August 5th.
Potential Altcoin Season
TOTAL2, measuring the market capitalization of the top 125 altcoins, has seen a 2% increase in value since the start of Bitcoin’s decline, reaching $870 billion. Analysts like Chris AI believe that the failure of Bitcoin’s dominance to break out signals a promising opportunity for alternative investors. In addition, ending diagonal patterns in BTC.D suggest a possible trend reversal, hinting at increased altcoin activity and higher prices.
Current Altcoin Performance
However, it’s important to note that true altcoin season begins when over 75% of the top 50 altcoins outperform Bitcoin over a 90-day period. At present, only 28% of altcoins have achieved this goal, indicating a mixed market sentiment. The TOTAL2 trend is currently navigating a horizontal channel, reflecting balanced buying and selling pressure. A breakout from this channel resistance could mark the official start of altcoin season, leading to increased momentum and the potential for other cryptocurrencies to flourish.
