Is crypto ‘altseason’ coming? Watch these 3 key signals in the months ahead
2024.10.28 14:25
The altcoin market has been trending down since the 2024 bull run hit a snag in March, but a number of key indicators reveal that the recent recovery could be a signal of a “massive move” ahead, according to crypto analysts.
Are altcoins readying for takeoff?
From a technical perspective, the altcoin market setup displays strength as it holds above an ascending trendline that has supported TOTAL2—the cumulative market capitalization of all cryptocurrencies except Bitcoin (BTC)— since the 2017 bull cycle.
“The altcoin market cap is currently testing a long-term trendline support that has held strong for the past eight years,” independent crypto analyst Mags declared in an Oct. 26 post on X.
A retest of this multi-year support line is a bullish indicator that signals that the downtrend is easing, and increased buying from the current level could push the altcoin prices higher.
“With BTC also breaking out, the market looks ready for a massive move,” the analyst added.
“Time to send it higher.”
At the time of publication, Bitcoin price was fighting resistance from its 2021 all-time high of around $69,000.
If BTC price produces a decisive close above this level and TOTAL2 holds above the long-term trendline support, it could signal that the market is ready for a significant move upward.
Altcoin market capitalization. Source: Mags
Fellow analyst Moustache meanwhile noted to watch for a breakout from a broadening wedge.
“I think within the next 1-2 weeks TOTAL2 will see the inevitable breakout of the 7.5-month descending broadening wedge,” Moustache explained in an Oct. 26 post on X.
According to Moustache, the recent 11% drop in TOTAL2 from $981 billion to $873 billion between Oct. 21 and Oct. 25 could just be a “deviation” as the price fights to reclaim the trendline which has acted as support since Sept. 26.
“A monster pump is long overdue for altcoins.”
TOTAL2 daily chart. Source: Moustache
It’s still Bitcoin season
Bitcoin dominance—a metric measuring Bitcoin’s market share relative to the overall crypto market—is one of the indicators commonly used to indicate whether the altseason has begun. It can provide traders with the overall investor sentiment and risk appetite in the market.
This indicator had been on an upward trend since the beginning of 2023, reaching a three-and-a-half-year high of 59.75 on Oct. 25.
At the time of publication, BTC dominance is at 59.56% maintaining the uptrend, indicating that it is still “Bitcoin season.”
Bitcoin Market Dominance. Source: TradingView
Popular crypto YouTuber Crypto Banter says a “parabolic” altseason phase comes once Bitcoin dominance drops significantly.
While pseudonymous crypto analyst Yoddha aregued that Bitcoin dominance could be “squeezing” inside an ascending wedge, signaling an imminent altcoin rally.
Source: Yoddha
“Bitcoin dominance is about to crash so hard,” said fellow analyst Crypto Rover in an Oct. 28 post on X adding “alteason is close.”
Meanwhile, the current level of Bitcoin dominance means altcoins are still underperforming BTC.
According to data from Blockchain Center, only 29% of the top 50 altcoins have outperformed BTC during the last three-month period, far from the 75% needed to have an official “altszn.”
Altcoin season index. Source: Blockchain Center
With Bitcoin challenging new highs, market participants could keep an eye on a possible breakout by the TOTAL2 market cap, reducing Bitcoin dominance and increasing Altcoin season index, all of which if they align, could signal the beginning of an altcoin season in the coming months.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
