Emerging Signals of Altcoin Season Amidst Bitcoin Dominance Decline

Recent fluctuations in Bitcoin’s dominance may indicate that an altcoin season could be approaching faster than many traders anticipated, according to a crypto analyst.

“The reason why you should have confidence in the altcoin price action is because the BTC Dominance chart looks bearish and has looked bearish for many weeks,” crypto analyst Matthew Hyland stated in a post on X.
Translation: “La razón por la que deberías tener confianza en la acción del precio de altcoins es porque el gráfico de Dominio BTC se ve bajista y ha lucido bajista durante muchas semanas.”

He continued, “The downtrend is favorable to continue; therefore, this relief rally has been a dead cat bounce in a downtrend.” In another video on Saturday, Hyland mentioned that recent Bitcoin price volatility may have been influenced by major financial players.

“Over the past month, I’ve kind of just maintained the view that a lot of this was really just manipulation, essentially for Wall Street to set themselves up,” he argued.
Translation: “Durante el último mes, he mantenido la opinión de que gran parte de esto fue realmente solo manipulación, esencialmente para que Wall Street se preparara.”

Bitcoin’s Dominance has Decreased by 5% Since May

Bitcoin’s dominance, which gauges its overall market share, has dropped 5.13% over the last six months, currently at 59.90% according to TradingView.

Bitcoin dominance is down 5.05% over the past six months. Source: Trading View

Bitcoin recently fell below the $100,000 mark for the first time in four months, stirring broader market concerns about its price trajectory. At publication time, Bitcoin is trading at $102,090, as reported by CoinMarketCap.

While Hyland suggests that the altcoin market might gather momentum soon, other indicators still point towards a Bitcoin-focused market.

Bitcoin is down 15.65% over the past 30 days. Source: CoinMarketCap

CoinMarketCap’s Altcoin Season Index presently stands at 28 out of 100, well within the “Bitcoin Season” range.

The Coming Altcoin Season May Differ from Previous Cycles

The last time the index indicated an Altcoin Season was on October 8, shortly after Bitcoin reached an all-time high of $125,100, prompting traders to foresee a capital rotation towards higher-risk assets. However, the index quickly reversed to a risk-averse trend after a market crash on October 10, which caused approximately $19 billion in leveraged positions to vanish from the crypto landscape.

Some crypto leaders believe the upcoming altcoin season will be more selective and concentrated compared to past cycles. Maen Ftouni, CEO of CoinQuant, recently expressed that older cryptocurrencies with an ETF or those anticipated to have an ETF will attract substantial capital during the next altcoin season.

“Not every single coin is going to have massive returns; the liquidity is going to be concentrated into certain places, dinosaurs being one of them, of course,” Ftouni remarked.
Translation: “No todas las monedas van a tener retornos masivos; la liquidez se va a concentrar en ciertos lugares, los dinosaurios siendo uno de ellos, por supuesto.”