Since Friday, September 6, the cryptocurrency market capitalization has increased by 20.33%, from $1.814 trillion to $2.182 trillion. The $368 billion increase was largely driven by Bitcoin [BTC].

This is evident on the Bitcoin Dominance chart. The index rose from 56.87% on September 8, to 58.59% on September 18, before falling back. It also reached the resistance zone below the 60% mark.

The importance of this resistance zone

The Bitcoin Dominance chart measures BTC’s market capitalization relative to the total cryptocurrency space, including top altcoins. Growth in the BTC.D metric means the “king” is outperforming the rest of the market.

In a post on X, crypto analyst Ali Martinez noted that the dominance chart has formed a rising wedge pattern and may have topped below the resistance at 60%. A decline in BTC dominance would indicate that capital is flowing into altcoins.

This could lead to an alt season, a period of abundant profits for long-term holders of altcoin projects.

The altcoin season index shows a reading of 35, while 75 is needed to confirm alt season. The rising score could be an encouraging sign for long-term crypto market participants.

Stablecoin signals show the market is ready for an altcoin season

The stablecoin supply ratio also shows that the market is preparing for an alt season. The decline in this metric implies that the aggregate market capitalization of all stablecoins is increasing relative to Bitcoin.

This implies an increase in buying power in the market. Therefore, a price increase in the entire altcoin market is possible.

However, the index's readings are still nowhere near the October 2023 lows that triggered the previous rally.