While Bitcoin (BTC) flirts with the long-awaited $100,000, and Jim Cramer recommends a “buy,” crypto traders eye the Altseason. Historically, money has rotated from Bitcoin into altcoins after significant breakouts, which could occur again this cycle, starting on Sunday.
This is because Sunday, November 24, will close the third consecutive week above Bitcoin’s last weekly candle’s high. Essentially, an altseason started every time this pattern occurred in the previous two cycles, as TechDev shared on X.
An altseason happens when altcoins outperform Bitcoin, diminishing its market cap dominance. Some analysts are already excluding Ethereum (ETH) as part of “altcoin” analysis, given its market size and relevance.
In summary, trading experts and crypto investors expect mid-to-low-caps to outperform the leaders, better distributing the capital among all cryptocurrencies.
The altcoins season (altseason) is starting
On TechDev’s insight, the Bitcoin and crypto analyst pointed out a pattern that dates back to March 2017. According to him, the last two altseasons started after three consecutive weekly closes above the last Bitcoin weekly high.
This pattern is in play right now, with the third consecutive week to close tomorrow, Sunday night, starting on Monday. Therefore, this week could be a key period for what some experts are labeling “utility altcoins,” with high growth potential.
Notably, TechDev crossed over the Bitcoin Dominance Index (BTC.D) with Bitcoin’s weekly chart, illustrating the start of the altseason.
In this context, some altcoins have already started surging, leading the way for other cryptocurrencies. Solana (SOL), Ripple (XRP), Cardano (ADA), Algorand (ALGO), Hedera (HBAR), Near Protocol (NEAR), and Sui Network (SUI) are some of them, outperforming other projects in the past few days as money starts rotating from Bitcoin and Ethereum to lower caps.
Bitcoin Dominance Index (BTC.D) today
As of today, Bitcoin dominance is retracing backward, testing the 50-day exponential moving average again, which is significant chart support. Currently, BTC has 59.30% of the entire cryptocurrency market capitalization, according to TradingView’s index.
Confirming a daily drop below the 59.50% moving support could validate the aforementioned historical analysis, marking the altseason start.
Interestingly, BTC.D has followed a previous analysis by CrypNuevo, reported on Finbold, looking to a resistance retest. The analyst forecasted Bitcoin’s dominance would make a top between 61% and 62%, confirming it with a retest before crashing.
The retest has already happened this week. Now, the market awaits to see if BTC.D will revert from its two-year uptrend, down-trending amid an expected altseason.
Featured image from Shutterstock.
Source: https://finbold.com/heres-why-the-crypto-altseason-could-start-tomorrow/