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Is Altcoin Season Finally Here? Bitcoin Dominance Faces Critical Test
The cryptocurrency market is bracing for a potential turning point as Bitcoin dominance approaches a critical resistance zone. This juncture has historically marked the onset of altcoin seasons, and experts are divided on whether this will indeed be the case. According to data shared by Trader Edge X, the 58-65% range may prove to be the starting point for a significant shift in market capitalization.
In the past, each time Bitcoin dominance reached these levels, an influx of capital into alternative cryptocurrencies led to explosive rallies, with valuations increasing tenfold on multiple occasions. The current price formation is mirroring this exact pattern, causing anticipation among traders and investors.
Technical indicators are also indicating a possible trend reversal. A golden cross has appeared on altcoin market cap charts, signaling a shift in momentum. This phenomenon has occurred twice before – in 2017 and 2021 – both times culminating in massive rallies for the mentioned assets. A breakdown from its current wedge pattern would likely lead to capital rotation from Bitcoin into altcoins.
The rise of Ethereum strength relative to Bitcoin can also be seen as a sign of an impending altcoin season. The ETHBTC chart is displaying increased relative strength, while Bitcoin’s price action moves sideways, potentially paving the way for broader rallies in alternative assets.
It remains to be seen if this critical resistance zone will hold or break, but traders should be prepared for any eventuality.
Source: coincentral.com
