The crypto market is buzzing about a potential altseason, but there are mixed signals.
Historically, altseasons follow Bitcoin rallies. After Bitcoin surges, it often consolidates, allowing altcoins to take the spotlight.
Analysts like Titan of Crypto recommend watching specific indicators for altcoin season signs like the 20-day EMA and a bullish crossover on the Stochastic RSI.
Not everyone agrees on the timing of an altseason, with analysts like Benjamin Cowen thinking it might be far off due to Bitcoin's increasing dominance.
The crypto market has been abuzz for a while, over a so-called altseason—an event in which Bitcoin's dominance drops heavily, and the altcoin market overtakes the flagship cryptocurrency as most hit their previous, or make new all-time highs.
However, how close are we to one of these altseasons? Can we even know when one is approaching?
It turns out that we can. And judging by Bitcoin’s recent price movements and signals from several market indicators, investors “may” now be gearing up for a shift In focus from Bitcoin to the altcoins.
Bitcoin's rally to a new all-time high of $73,750 in mid-March, followed by a later crash to the $61,000 - $56,000 zone at the time of writing, has stirred up conversations within the crypto community, among experts who expect an altcoin season.
Historically, Bitcoin typically emerges as one of the best performers across the market and often sets the pace for the rallies of other cryptocurrencies.
However, after these rallies, Bitcoin often consolidates, leaving room for the altcoins to shine in what is known as the “altseason”.
But how close are we to one—from a realistic perspective?
The altcoin season index
According to the altcoin season index above, the market appears neutral but is leaning a lot more towards a Bitcoin season than an altcoin season, owing to Bitcoin's dominance and its position above the neutral 50% mark.
If an altcoin season is indeed on the way, some of the driving factors behind this growth would be advancements in blockchain scalability as we have seen in chains like Solana, Avalanche and Shibarium, as well as an increasing use of smart contracts.
These factors would not only serve as a push for wider adoption but will also set the stage for a shakedown of the current market dynamics.
According to recent insights from analyst, Titan of Crypto, there might be a few concrete indicators to keep an eye out for, when it comes to predicting an altcoin season.
Indicators for an altcoin season
Some of these indicators include:
1. A Retest of the 20-day Exponential Moving Average
This medium-term moving average which lays greater emphasis on medium to near-term price movement rather than longer-term movements, is great for predicting small changes that might indicate incoming rallies.
According to the analyst, a bullish crossover in the total ($TOTAL) crypto market cap’s EMA20 is a surefire sign of an incoming rally.
2. The Stochastic RSI
This metric is used to determine the strength of the RSI over a specific timeframe.
When we see a bullish crossover on the Stochastic RSI, it might mean that the altcoins are preparing for a significant price movement.
We also have the issue of Bitcoin's dominance to contend with. According to charts from TradingView, the Bitcoin dominance currently sits at around 55%, and is facing resistance around this price level.
Aside from a false breakout between 12 and 20 April, Bitcoin has remained underneath this 55% level since April 2021 (three years ago).
A possible decline in Bitcoin’s dominance
All of these factors combined indicate a possible drop in Bitcoin's dominance, a shift in the altcoin season index, and the boom of Ethereum and most of the other altcoins on the market.
Altcoin season is not near
In more contrarian views, analysts like Benjamin Cowen believe that an altcoin season might not be close at all, considering the strides in Bitcoin’s dominance, and how the last major altcoin occurred in 2021.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.