Altcoin Season Looms as Bitcoin Dominance Shows Signs of Weakness

• The altcoin market cap shows bullish signals, suggesting a potential altcoin season ahead.
• Analysts predict altcoins will outperform Bitcoin, driven by bullish patterns and whale accumulation.

Bitcoin’s dominance is currently indicating a potential breakdown from a rising wedge pattern, according to on-chain analyst Ali Martinez. This pattern is frequently used as a bearish indication for Bitcoin, implying that a shift in favor of altcoins is imminent.

Martinez also noticed that the altcoin market cap is breaking out of a falling wedge, which is usually a bullish signal. This action indicates the prospect of an upcoming altcoin season, which has sparked enthusiasm among traders and investors who have been waiting for the tide to flip in favor of these alternative cryptocurrencies.

Things are getting interesting! #Bitcoin dominance is showing signs of a potential breakdown from a rising wedge, while the #altcoin market cap is breaking out of a falling wedge.#AltcoinSeason is just around the corner! pic.twitter.com/aViZogkjdp

— Ali (@ali_charts) September 21, 2024

Altcoin Season Index Signals a Shift in Market Dynamics 

Adding to this confidence, the Altcoin Season Index has surpassed 35, which many analysts believe is a precursor to a full-fledged altcoin surge. An official altcoin season is often confirmed when the index exceeds 75.

Source: Blockchain Center

However, numerous experts have already seen the present upward trend and feel that a revolution in market dynamics is imminent. Michaël van de Poppe, a cryptocurrency expert, believes altcoins will soon outperform Bitcoin. His confidence is based on recent market moves, which appear to be leading to a positive phase for cryptocurrencies.

CNF previously highlighted Michaël van de Poppe’s projection that the altcoin market capitalization might reach $1.8 trillion by Q1 2025. His estimate is based on Fibonacci levels, a renowned technical analysis tool for predicting market turning moments.

This prognosis implies that altcoins are on the verge of a strong rally, with the potential to yield substantial gains for investors who have retained faith in the market.

Furthermore, another well-known analyst has identified two major reasons that might fuel a bullish surge in cryptocurrencies in the next months: the Cup and Handle pattern and whale accumulation.

The Cup and Handle is a well-known bullish chart pattern that usually anticipates major upward swings, whereas whale accumulation suggests that large investors are actively buying altcoins.