Technical analysts are indicating that a surge in the altcoin market, also known as “altseason,” could be on the horizon. Despite Bitcoin’s recent price fluctuations, the altcoin market cap has remained steady, retesting the $315 billion level for several weeks. Many traders are looking to altcoins for higher risk-to-reward opportunities, as they have historically appreciated in value after Bitcoin’s price increase. Analysts are closely monitoring the Bitcoin market dominance chart, which has been above 50% since September 2023 and is currently at 54.5%.
The shift between Bitcoin dominance rising and dropping is seen as a signal for altcoins to perform well.
Although this hasn’t happened yet, analysts are observing that the chart is moving sideways, which could indicate a potential reversal and the start of altseason. The Ichimoku technical indicator is also being watched closely, as it is believed to play a significant role in initiating altseason.
However, altcoins are currently trading mostly flat, and many high-cap altcoins are still down significantly from their peak prices in 2021. The total crypto market capitalization remains around $2.74 trillion. It’s worth noting that after Bitcoin’s halving, the focus tends to shift towards altcoins, which could contribute to a potential altseason.
