Cryptocurrency Market Sees Bullish Momentum, Altcoin Season on the Horizon

The past four days have witnessed a significant shift in the cryptocurrency market, with Bitcoin leading the charge and driving bullish momentum across various altcoins. This trend has sparked projections of potential gains in the altcoin market, with technical indicators suggesting an altcoin season may be imminent.

Whales Accumulate Bitcoin, Altcoins Gain Traction

A recent analysis by crypto analyst Kevin (@Kev_Capital_TA) highlights a significant development in the Bitcoin dominance chart, where a daily death cross is forming. This rare occurrence could mark a shift in cryptocurrency investments in the coming months, with implications for both Bitcoin and the altcoin market. The death cross, a technical indicator where a short-term moving average crosses below a long-term moving average, often signals bearish momentum.

Bitcoin Dominance Chart Forms Daily Death Cross

The Bitcoin dominance chart, which tracks the percentage of the total cryptocurrency market cap represented by Bitcoin, is on the verge of forming a death cross in the daily candlestick timeframe. This event is particularly notable, as it is occurring at a macro high for the first time in four years. According to Kevin’s analysis, Bitcoin dominance has faced a macro golden pocket rejection twice in the past three months, lending further weight to the potential change in market dynamics.

Historical Precedent Suggests Altcoin Season

Kevin’s analysis highlights a historical precedent where a daily death cross at a macro high preceded the onset of alt season. In 2021, a similar event occurred on the Bitcoin dominance chart, preceding a shift in market momentum away from Bitcoin and toward altcoins. During that time, Bitcoin’s dominance dropped from around 63% to below 40% by April 2021.

Current Market Setup Suggests Comparable Scenario

The current setup suggests a comparable scenario may be unfolding. If the death cross leads to a sustained drop in Bitcoin dominance, it could pave the way for an altcoin market rally. While Bitcoin continues to dominate inflows, recent price performances of cryptocurrencies like XRP, Dogecoin, and Solana seem to be threatening this dominance. Ethereum, the king of altcoins, has yet to manifest a similar rally this cycle.

Altcoin Season on the Horizon?

Crypto analyst TechDev also points to the onset of an altseason, focusing on the six-month candlestick timeframe of the Bitcoin dominance chart. According to TechDev, the current candlestick aligns with historical moments when altcoins rallied, citing parallels in 2017 and 2021. He explains that during these cycles, Bitcoin dominance declined in a new six-month candle after it surpassed the previous cycle’s all-time high.

Conclusion

The cryptocurrency market is witnessing a significant shift, with bullish momentum driving gains across various altcoins. The formation of a daily death cross on the Bitcoin dominance chart, combined with historical precedent and technical indicators, suggests an altcoin season may be on the horizon. As the market continues to evolve, investors and traders will be closely watching the developments in the coming months.

Source: Newsbtc.com

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