Bitcoin dominance is nearing a potential breakdown from a rising wedge formation.
Altcoin market cap is showing strength, breaking out from a bullish falling wedge pattern.
Historical data shows Bitcoinâs strong Q4 performance when September ends in green.
The cryptocurrency market is experiencing an important critical moment. Bitcoinâs dominance is dangling on the verge of a breakdown from its rising wedge pattern, as the altcoin market cap makes a powerful comeback from its falling wedge. This might illustrate a forthcoming altcoin season, during which alternative cryptocurrencies outperform Bitcoin.
Bitcoin Dominance at Risk
The measure of Bitcoinâs share in the crypto market, known as Bitcoin dominance, is reflecting indications of a potential fall. At the time of writing, the market cap dominance was at 57.94%, which is slightly down by 0.11%. After a gradual growth over recent months, this has brought dominance to its top near 60%.
Things are getting interesting! #Bitcoin dominance is showing signs of a potential breakdown from a rising wedge, while the #altcoin market cap is breaking out of a falling wedge.#AltcoinSeason is just around the corner! pic.twitter.com/aViZogkjdp
â Ali (@ali_charts) September 21, 2024
The chart shared by Ali demonstrates a rising wedge pattern, a technical indicator that usually signifies an approaching breakdown. According to recent patterns, the decrease in Bitcoin dominance might lead to a possible upsurge in how altcoins perform. A breakdown of Bitcoin dominance typically means that capital could flow out of Bitcoin into other cryptocurrencies. As a result, altcoins might gain in value as investors seek opportunities beyond Bitcoin.
Altcoin Market Cap on the Rise
In contrast, the altcoin market cap is reflecting power. With months of decline, the total market cap for altcoins, excluding the top 10 cryptocurrencies, is at $209.49 billion. After breaking out of a falling wedge pattern, it is up by 0.36%. Falling wedges typically serve as bullish signs, pointing to the possible rise of significant value.
The breakout suggests that altcoins are poised for further growth in the near term. This breakout may encourage investors to shift focus towards altcoins, driving the long-anticipated altcoin season.
Bitcoinâs Q4 Performance and Historical Trends
Analysis of historical data points to the likelihood of a bullish run for Bitcoin as the market enters Q4. Analyst Crypto Rover reports that Bitcoin has posted standout returns in Q4 when September ends positively.
Whenever September turns green, Q4 returns are through the roof.
This is super bullish for #Bitcoin! pic.twitter.com/5rAUqP9RgS
â Crypto Rover (@rovercrc) September 21, 2024
The figures from earlier years reveal striking rises, with 81.24% growth in 2015 and 58.17% surge in 2016. In 2023, Bitcoin recorded a 56.9% growth for Q4 after experiencing a green September. With Bitcoin already posting a 6.49% gain in September 2024, expectations for Q4 are rising. However, the real test will be whether this pattern holds in the current market climate, as the crypto sector remains volatile.
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