- Technical analysts are eyeing crypto charts for signals that an altcoin season may be imminent
- Bitcoin’s market dominance has been moving sideways, which analysts view as a potential reversal signal before altcoins start rallying
- Analysts are looking at indicators like the altcoin market capitalization and Bitcoin dominance charts for clues about the timing of the next altseason
Bitcoin has been rangebound, but altcoins show signs of breaking out. According to analysts, key metrics indicate altseason could begin very soon.
Dominance Chart Hints at Bitcoin Weakness
The Bitcoin dominance chart measures Bitcoin’s market capitalization as a percentage of the overall crypto market cap. This chart has been trending downwards since September 2021.
Analysts view a decreasing dominance chart as bullish for altcoins, as it shows capital rotating out of Bitcoin and into smaller cap coins. The chart is currently moving sideways, which often precedes a reversal.
Analyst Crypto Nova notes that the shift between Bitcoin dominance rising and dropping is when altcoins truly start shining. This hasn’t happened yet, but the chart is no longer showing higher highs and higher lows. The sideways movement suggests a reversal could occur soon.
Altcoin Market Capitalization Paints a Bullish Picture
While Bitcoin has corrected from its all-time high, the total altcoin market capitalization has held steady around $1.5 trillion. Analyst Rekt Capital notes the altcoin market cap has repeatedly tested this level as support in recent weeks.
Meanwhile, the altcoin market cap excluding the top 10 cryptocurrencies is poised for a “massive bull run” according to analyst Kevin Svenson. He reminds that after each Bitcoin halving, the narrative tends to shift towards altcoins.
The Bottom Line
Key metrics are aligning for altseason. Bitcoin appears to be losing steam, while the altcoin market cap is holding strong support.
Analysts will be closely watching the Bitcoin dominance chart for signs of a breakdown, which could mark the official start of a new altcoin bull run.
