$BTC
Altcoin Season Predictions
Gambardello analysis predicts the start of an altcoin season or altseason accompanied by a significant decline in BTC dominance.
He presented a graphical analysis of the major coins' dominance trends from 2017 to present, highlighting the inverse relationship between BTC dominance and the altcoin market, especially during periods of high volatility.
The analyst presentation detailed how BTC dominance declined during the altcoin explosion in the bull run of 2017 and 2021. The chart reveals a recurring pattern where Bitcoin dominance shows a cyclical trend, rallying before the next decline.
Additionally, Gambardello displays two moving average (MA) indicators whose crossover points have historically signaled a decline in such dominance.
Indicator Heads Down
Coin Edition reports that, Gambardello's chart shows that these MAs are approaching the crossover point once again. The data also shows that Bitcoin dominance is nearing its peak, with signs of losing momentum.
As a result, the analyst expects a potential decline in BTC dominance, signaling a shift in investment from Bitcoin to altcoins or a substantial capital flow into the altcoin market.
Historical market behavior supports Gambardello's predictions. Typically, Bitcoin reaches a new high, marking the start of a bull cycle. Thereafter, a period of accumulation occurred, followed by renewed capital inflows leading to a parabolic rally in various altcoins.
The emotional dynamics of the crypto market also played an important role in this development. Retail investors often hesitate during initial rallies due to fear, uncertainty and doubt (FUD).
This cautious approach was soon replaced by FOMO, prompting investors to rush into the market, resulting in an incredible rally and high volatility.
