- A key indicator, Bitcoin Dominance, has broken below its two-year trendline.
- Analysts are calling this a confirmation that a new “alt season” is underway.
- Major altcoins like Ethereum, XRP, and Cardano are already posting double-digit weekly gains.
A key indicator for the crypto market just flashed, leading one top analyst to declare that the long-awaited “altcoin season” is now officially underway.
In a recent post on X, the analyst noted that most altcoins have now broken resistance levels and printed massive green candles to mark a new phase in the crypto market bull run.
CaptainFaibik isn’t the only one. CoinEdition had reported on two other analysts who saw this altseason coming.
BTC Dominance drops, ETH reclaims $4,000 support
Using a reverse indicator, the analyst highlighted a notable development in the weekly Bitcoin dominance chart. The crucial metric reflected a significant drop, indicating a break below its two-year-long trendline.
According to data from TradingView, Bitcoin’s dominance dropped from 66% to 60% in less than two months, suggesting a capital rotation scenario from the pioneer cryptocurrency to the altcoin market.
Ethereum, the largest altcoin by market capitalization, led the latest rally by surging over 20% this week. The flagship altcoin rebounded from a notable pullback, bouncing off support at $3,354 to reach a $4,206 local high, amid increasing bullish momentum. Ethereum’s latest rally enabled a return above the crucial $4,000 psychological level, leaving the altcoin’s supporters with high optimism and an expectation of further upside movement.
Top altcoins follow Ethereum’s pattern
Other top altcoins followed Ethereum’s trajectory by recording significant rallies, with some reclaiming crucial levels by turning resistance into support. For instance, XRP rebounded from a recent pullback after Ripple and the SEC officially filed for dismissal in the protracted litigation between them. The latest rebound saw the payment-focused cryptocurrency breaking above the $3 resistance and turning it into support.
In the meantime, ADA surged 15% this week and returned above $0.8. The altcoin’s historical behavior around this region makes it a crucial level under the current market conditions. Meanwhile, Solana traded at $181 at the time of writing after a successful return above the $180 resistance.
Overall, the total altcoin market cap surged 13% this week amid increasing bullish momentum. Most analysts expect the metric to climb higher, reflecting their belief in a potential boost in altcoin demand to sustain the emerging altseason.
What do all these indices mean? The BTC Dominance chart is just one signal. Here’s a backdrop on what happened when the ‘Altcoin Season Index’ dropped.
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