Analysts believe that an altcoin sector rebound could be likely.
BTC dominance and ETH/BTC ratio suggested a likely relief for the sector.
The altcoin season momentum slowed in December after a wild run in November which pumped Dogecoin (DOGE), Ripple (XRP)and Hedera Hashgraph (HBAR).
Now, the next leg of the altcoin season could be imminent based on historical Bitcoin (BTC) dominance trends.
Is the altcoin season closer?
According to crypto analyst TechDev 52Bitcoin dominance (BTC.D) could drop in January, triggering the much-awaited altcoin season rebound. He said,
“History tells us the candle that starts tomorrow is for altcoins.”
Source: X
The chart, on a 6-month timeframe, showed that BTC Dominance (BTC.D) had hit long-term trendline resistance. A rejection at this level could lower BTC dominance, potentially allowing altcoins to recover strongly.
Additionally, the ETH/BTC ratio pointed to a likely bullish outcome for the altcoin sector. This ratio tracks ETH’s relative performance to BTC and is considered a barometer of the health of altcoins, given ETH’s status as the leading altcoin.
Blockchain analysis firm SwissBlock noted that the ETH/BTC ratio had bottomed as BTC.D struggled, suggesting that a rebound for the altcoin season was on the horizon.
In its Telegram broadcastthe firm said,
“Bitcoin’s dominance is losing steam, and ETH/BTC has printed a higher low, possibly signaling a bottom. Is it time for altcoins to shine, at least for a while?”
Source: SwissBlock
That said, some select altcoins performed well in the past week despite the overall market weakening. Virtual Protocol (VIRTUAL) gained nearly 30%, reaching $4 for the first time. Similarly, Gate Token (GT) and FTX Token (FTT) each rallied about 18%.
However, the broader altcoin sector remained flat, as indicated by the Altcoin Season Indexwhich was hovering around the neutral level. This suggests that alt-season momentum could either rebound or weaken further.
Source: Blockchain Center
That said, there are increasingly more ETH bulls than BTC, a trend that might bode well for the king altcoin and the broader sector.
Next: Bitcoin – THESE are the signs supporting another ATH for BTC in January!
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