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 To Faces Potential Breakdown
According to a recent tweet by popular crypto analyst Ali Martinez, Bitcoin’s dominance in the crypto market may be on the verge of a breakdown. Martinez pointed out a rising wedge pattern forming in Bitcoin dominance, a bearish signal that often precedes a decline.
This potential shift could have created opportunities for altcoins to gain more market share.
Since the middle of September, Bitcoin has begun to experience a slight price increase, briefly surging past critical levels below $62,000. This price rise also affected its market dominance, but instead of solidifying its position, investors have started shifting their focus to altcoins.
As a result, Bitcoin’s dominance has been gradually decreasing, currently standing 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.
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.
Also Check Out: SkyBridge Capital Founder Lauds SOL For Leading Tokenised Assets Space; SOL Rally Nearing?
Source: https://coinpedia.org/news/altcoin-season-alert-bitcoins-dominance-faces-breakdown-as-altcoins-eye-explosive-rally/