Altcoins have displayed strength following Bitcoin’s recent recovery, leading analysts to suggest a possible onset of an altcoin season.
Altcoin Market Shows Strength
ParabolicPump, co-founder of Crypto Capital, noted that many altcoins have been very bullish in recent days. Popular trader 360Trader observed that TOTAL3, excluding BTC and ETH, had retested the upper boundary of a falling channel. Although this level has suppressed the price since March 2024, a decisive close above it could mark the end of the bear dominance.
Bitcoin Dominance Drops
According to ParabolicPump, as altcoin prices rallied, Bitcoin’s dominance is on the verge of a downside break from its rising wedge. “It is only a matter of time,” the analyst pointed out, adding: “Every bull run in crypto had a phase where Bitcoin dominance dropped significantly.” As of Sept. 23, Bitcoin’s dominance is 57.39%, down 1.09% over the past week.
Is It Time to Celebrate?
Despite the compelling technicals, it might still be too early to conclude that an altcoin season has begun. The altcoin season index by Blockchain Center shows that only 39% of the leading 50 altcoins have outperformed Bitcoin in the last 90 days. A value above 75 is needed to confirm an altcoin season.
Despite the favorable technical indicators, it is premature to conclude the beginning of an altcoin season as the altcoin index remains below the required level.
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