Altcoin Season To Begin Soon Analyst Hints at a Bullish Breakout Pattern

The post Altcoin Season To Begin Soon Analyst Hints at a Bullish Breakout Pattern appeared first on Coinpedia Fintech News

In recent months, altcoin prices have plunged by 30% to 70%, causing many investors to question the about holding their assets. However, the outlook for altcoins might not be as negative as it appears. According to renowned crypto analyst Moustache, altcoins are forming a perfect Wyckoff accumulation pattern, signalling a potential surge, many investors are eager to see what’s next.

Altcoin Breakout on the Horizon

Moustache explains that altcoins have been following the Wyckoff accumulation pattern for several years. This pattern, known for predicting market movements, usually points to a market bottom followed by a strong rally. He believes the current consolidation phase suggests that altcoins may soon see a significant upward move.

#Altcoins

First Altcoins have formed a perfect wyckoff accumulation pattern for years and now they are consolidating before the next leg up imo.

Big descending broadening wedge in the making.

Don't look too much at the lower timeframe, the bigger picture looks still great. pic.twitter.com/F5v6PWvIVU

— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 (@el_crypto_prof) September 5, 2024

Alongside the Wyckoff pattern, Moustache also highlights a large descending broadening wedge forming. This pattern often signals a period of accumulation before a bullish breakout. He advises investors not to focus too much on short-term price changes but to pay attention to the bigger picture. 

Although the market is showing some minor volatility, Moustache remains optimistic about the long-term outlook for altcoins. He believes the broader market still looks promising, with potential for big gains as the next upward movement approaches.

Bitcoin’s Declining Dominance Opens Door for Altcoins

Bitcoin’s dominance is a key factor that influences the rise of altcoins. For altcoins to have their moment, Bitcoin’s dominance needs to drop.

Looking at the weekly chart, Bitcoin’s dominance (BTC.D) fell from 62.69% in March 2021 to 40.89% by May. This period coincided with many altcoins reaching their all-time highs during the last bull market.

To replicate 2021’s performance, at least 75% of the top 50 altcoins need to outperform Bitcoin. Currently, data from Blockchaincenter shows that only 22 cryptocurrencies, including XRP, TRX, XMR, HNT, and AAVE, have managed to achieve this.