Is Altcoin Season About to Start? Bitcoin Dominance Faces Breakdown

Published by

Mustafa Mulla

September 21, 2024

The altcoin market is heating up, with a recent 5.7% surge in market cap signaling the start of a potential altcoin season. Ethereum and other major altcoins are primed for big gains as Bitcoin’s grip on the market weakens. Crypto analyst Ali Martinez has warned of a potential breakdown in Bitcoin dominance, with a rising wedge pattern indicating a bearish trend.

Meanwhile, the altcoin market cap is breaking out of a falling wedge, hinting at a massive rally ahead. Could this be the moment altcoins steal the spotlight?

Bitcoin Dominance Under Pressure

Ali Martinez’s recent analysis, shared via Twitter, highlights that Bitcoin’s dominance in the crypto market may be nearing a breakdown. He identified a rising wedge pattern, a technical indicator often linked to downward trends. This shift could open the door for altcoins to capture more market share.

Since mid-September, Bitcoin has experienced a modest price uptick, briefly surpassing key resistance levels near $62,000. However, instead of reinforcing Bitcoin’s dominance, this rise has prompted some investors to turn their attention to altcoins. Bitcoin’s dominance has gradually decreased and now stands at 57.95%.

Altcoins Poised for a Breakout?

The decline in Bitcoin dominance comes as the altcoin market shows signs of breaking out from a falling wedge pattern, a bullish indicator that often signals upward momentum. This dual movement—Bitcoin’s weakening dominance and the altcoin market’s potential breakout has raised speculation about the possibility of an impending altcoin season.

Altcoin Season Index Hits Two-Month High

Altcoins have experienced notable growth this week, alongside Bitcoin (BTC). This upward movement has caused the Altcoin Season Index to climb to a two-month high of 45, according to data from Blockchain Center.

The rising index reflects growing optimism toward altcoins. However, for the index to surpass 75 and signal a full-fledged altcoin season, altcoins must continue to build on their recent gains.

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Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.