The cryptocurrency market has long been characterized by cyclical patterns, with periods of substantial growth followed by consolidation phases. As the market matures, analysts are closely monitoring technical indicators to anticipate the next major move. According to several crypto analysts, the stars seem to be aligning for an imminent altcoin explosion, fueled by a confluence of technical signals.
Altcoin Growth Cycles and Bitcoin Dominance
Crypto analyst ilay (VP), revealed a compelling chart showcasing the correlation between altcoins and Bitcoin on a two-week timeframe. This chart illustrates the peak growth of altcoins in previous cycles, marked by green circles.
This is the #TOTAL2/BTC chart on the 2W timeframe, illustrating the correlation of #altcoins to #Bitcoin In this chart, you can observe the peak growth of altcoins in the two prior cycles (marked with green circles). The green zone remains as a resistance level, that could… pic.twitter.com/L3OVfP8mkB
— ilay (aka VP) (@ilay_vp) May 26, 2024
Notably, these green zones have historically served as resistance levels, potentially signaling the forthcoming top of the next cycle when the altcoin market approaches these levels with elevated RSI readings.
Simultaneously, ilay (VP) highlights an ascending diagonal blue zone, which represents a support level. Moreover, this pattern suggests that the growth potential of altcoins is diminishing relative to Bitcoin. This, moreover, potentially implies higher Bitcoin dominance in the current cycle compared to previous ones.
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Historical Patterns and Buy Signals
Corroborating ilay’s analysis is top analyst El Crypto Prof (@el_crypto_prof), who draws attention to the breakout of altcoins from the Gaussian Channel. Besides, this is a technical pattern that preceded the legendary altcoin season nearly four years ago. Significantly, the analyst also observes buy signals from the supertrend and EMA 10 indicators, echoing the conditions that underpinned the previous altcoin run.
Adding to the bullish sentiment is Trader Tardigrade (@TATrader_Alan), who notes an inverse Head & Shoulders pattern on the Total2 chart – a representation of the total crypto market capitalization excluding Bitcoin. In a tweet, he states:
“#Altcoin market will surge 3x if $Total2 (Crypto Total Market Cap excluding #Bitcoin) breakout this inverse Head & Shoulders Pattern. We are now at the end of the right shoulder. It is expected to breakout in a few weeks time according to this pattern.”
While the analysts acknowledge the potential for higher Bitcoin dominance in this cycle, the collective weight of these technical indicators and historical patterns points toward an imminent altcoin season.
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The post Altcoins Primed for Explosive Rally Amid Bitcoin (BTC) Dominance: Top Analysts Spot Massive 3X Breakout Pattern appeared first on CaptainAltcoin.
