An analyst has pointed out two patterns forming in altcoin and Bitcoin-related charts that could suggest an altseason may be coming soon.
Signs May Finally Be Aligning For An Altcoin Season
In two new posts on X, analyst has discussed some signals that could foreshadow an altcoin season. The first chart shared by the analyst is for the combined altcoin market cap, which is simply the combined cryptocurrency market cap excluding Bitcoin and Ethereum.
The graph shows that the total altcoin market cap has been forming a pennant recently. The pennant is a pattern in technical analysis (TA) with two components: a pole made up of the prevailing trend and a triangle or “pennant” representing consolidation.
In the case of the current pennant, the sharp uptrend that the altcoin market cap saw between Q4 2023 and Q1 2024 makes up for the pole portion, while the downtrend since then corresponds to the pennant. This type of pennant is popularly called a bull pennant.
As is apparent in the chart, the altcoin market cap has recently been making another retest of the upper channel of the pennant. It might see a significant rally if it manages to break the resistance this time.
Pennant breakouts can be the same length as the pole, so Martinez notes that the altcoin market cap could end up crossing the $1 trillion mark. Naturally, this would only be if a break does happen. The analyst sounds optimistic, though, saying, “it is just a matter of time before #altcoinseason!”
The second chart that could hint towards the oncoming of an altcoin season is the market cap dominance of Bitcoin. “Market cap dominance” here refers to the percentage of the total cryptocurrency market cap that BTC accounts for.
Here is the graph for this metric shared by Martinez, which shows the pattern that has been forming in its value recently:
The Bitcoin market cap dominance appears to have been moving in a rising wedge pattern recently. The rising wedge is another TA pattern, but unlike the bull pennant forming in the altcoin market cap, this formation is considered bearish.
In a rising wedge, the asset’s price moves up between converging trendlines, with its movement getting narrower as it approaches the apex. As is visible in the chart, the Bitcoin market cap dominance is nearly at the end of the rising wedge, which suggests a break under the lower channel may happen soon.
The metric has a value of 57%, but the analyst notes that this bearish formation could lead to a dip toward the 47% mark, which would set the stage for the altcoin season.
BTC Price
Bitcoin’s surge has calmed down over the last few days as the asset has taken sideways movement around the $63,500 level.
Featured image from Dall-E, charts from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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