A crypto analyst, known as cryptododo7 on X, thinks we might be on the verge of an altcoin season. Their analysis focuses on Bitcoin dominance, which is the percentage of the total crypto market cap that Bitcoin holds.
Bitcoin Dominance: The Key Indicator
cryptododo7’s technical analysis of the Bitcoin dominance chart shows a potential bullish pennant formation. This pattern, often seen before a price surge, suggests Bitcoin dominance could climb to around 67.51%. This increase, however, doesn’t automatically mean the whole market is going up. Bitcoin and altcoins could actually drop in price while Bitcoin dominance rises. The key takeaway is that this 67.51% level might mark the peak
What is an Altcoin Season?
An altcoin season is when altcoins (cryptocurrencies other than Bitcoin) outperform Bitcoin. This usually happens when Bitcoin dominance falls. Some analysts were skeptical about an altcoin season this time around, citing the huge increase in the number of altcoins in recent years. But cryptododo7 remains optimistic. They predict that during this potential altcoin season, altcoins could see massive investment, potentially as much as $627 billion.
More Evidence for an Altcoin Season?
Adding to the optimism, the weekly MACD (Moving Average Convergence Divergence) for the total crypto market (excluding the top 10 coins) is showing an upward curl. The MACD is a tool used to spot potential trend reversals, and this upward curl hints at a possible bullish shift in the altcoin market. However, it’s still early days, and this is just one piece of the puzzle.
The Current Market Situation
Currently, the total crypto market cap is around $2.76 trillion, with Bitcoin making up about $1.67 trillion. The CoinMarketCap Altseason Index is at 21, indicating an altcoin boom isn’t quite here yet.
