As Bitcoin’s price hits its lowest point, its dominance in the cryptocurrency market continues to decline, with analysts predicting that altcoin breakout season is imminent.
A recent analysis by a leading cryptocurrency expert has uncovered a key pattern that could herald a major shift in the cryptocurrency landscape. Here’s what you need to know
Are altcoins about to explode?
Captain Faibik, a well-known cryptocurrency trader, pointed out in a recent tweet that Bitcoin’s dominance on the weekly chart is showing a rising wedge. This technical pattern usually means that a market trend reversal or breakdown is likely.
Faibik said that once Bitcoin’s dominance breaks down from this rising wedge pattern, the real rise of altcoins will begin. However, a rising wedge is usually a bearish signal, suggesting that Bitcoin’s dominance may soon weaken.
This potential collapse could set the stage for a major shift, with altcoins gaining more attention and attracting significant investment.
Rare buy signal emerges for altcoins
Similar to Faibik’s analysis, prominent cryptocurrency analyst Mikybull Crypto highlighted a rare buy signal that just appeared on the altcoin dominance chart.
At the same time, this signal is crucial as it is the first time such a signal has appeared in a macro capitulation channel since 2016. This rare event shows that altcoins are showing strong potential and may be preparing for a major move.
If past trends continue, we could see altcoins outperform Bitcoin and other major cryptocurrencies in Q4, setting the stage for a potential altcoin breakout season.
Indicators show a delayed altcoin season
According to Blockchaincenter, the altcoin season is still out of reach, with a score of only 27. The goal for the start of the season is 75%, which is still far from being achieved. However, some altcoins have recently shown impressive growth.
For example, Sun Token (SUN) has surged 187.63% in the past 90 days. In addition, TON’s Notcoin (NOT) has risen 131.71% this season.
