- Altseason signals emerge as Bitcoin dominance weakens and technicals show momentum.
- Analysts expect altcoins to rally after Fed rate cuts and Bitcoin’s $90K stabilization.
- TOTAL2 and BTC.D charts hint at a coming altseason as macro conditions shift bullish.
The crypto market is seeing anticipation as several technical indicators suggest an altcoin season may be imminent. With Bitcoin’s recent performance stabilizing above $90,000, market watchers shift their focus to the potential for altcoins to outpace BTC in the coming weeks.
According to Merlijn The Trader analysis, he highlighted a classic pre-altseason signals, stating that every major altseason started with a breakout structure and the RSI heating up. He specifically pointed to the TOTAL2 chart, which tracked the total market capitalization excluding Bitcoin, as evidence of building momentum.
In a follow-up analysis, Merlijn emphasized patterns in the Bitcoin dominance chart ($BTC.D) and shared what he calls “a perfect descending triangle.” This technical formation usually signals bearish sentiment for the asset being tracked. In this case, it is Bitcoin’s market share relative to other cryptocurrencies.
On the other hand, analyst Daniel Ramsay shared this outlook. He stated that Dominance had reached into the Major Resistance Zone and soon a rejection will be witnessed, followed by a decline to the Support Zone. The current market setup draws comparisons to the 2021 bull run, when altcoins saw historic gains. Justin Wu noted the similarities while highlighting key differences.
Another market watcher, BitElite, offered a specific timeline tied to macroeconomic factors. The analyst stated that altseason will start likely in the second week of May. “That is where Fed meeting is about cutting interest rates.” The analyst identified three critical factors needed for an altcoin season, which are cutting rates, M2Money supply to go up, and lastly, QT to slow down or stop.
Bitcoin Halving Sets Stage for Altcoin Growth
Looking at the market psychology chart from Crypto Rover, the current phase appears to align with the transition from “Awareness Phase” to “Mania Phase” in the classic market cycle. The chart suggests the market may be approaching the “Media attention” and “Enthusiasm” stages that typically precede more exuberant phases like “Greed” and “Delusion.”
What makes the current setup particularly interesting is how it fits into the four-year Bitcoin halving cycle theory.
With the most recent halving occurring in April 2024, historical patterns suggest we are entering the period where altcoins typically begin to outperform Bitcoin as new capital enters the market and investors seek higher-risk, higher-reward opportunities.
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