Analyst: Booming altcoin season may be around the corner

Author: Martin Young, CoinTelegraph; Compiler: Deng Tong, Golden Finance

Crypto’s famous “altcoin season” — a period during a bull run when small-cap cryptocurrencies surge in value — may soon be here, market analysts say.

On April 11, trader and analyst “Rekt Capital” observed that despite the sharp price swings in Bitcoin over the past few weeks, the altcoin market cap “has been the only constant.” He added that it has been constantly retesting support at $315 billion for several weeks.

Crypto traders have been keenly watching the altcoin market as they represent a higher risk-reward ratio, and many expect altcoins to surge in the next phase of the bull run.

Historically, altcoin price appreciation has lagged behind Bitcoin, and charts such as altcoin market capitalization and Bitcoin dominance can provide traders with some signals as to when altcoins may enter a bull season.

Excluding the top 10 altcoins by market cap. Source: Rekt Capital

However, the altcoin rally has not yet emerged. Following the highs in mid-March, most altcoins have corrected and remain close to their all-time highs above $70,000.

However, analysts are now showing renewed interest in Bitcoin market dominance, which has remained above 50% since September 2023 and currently stands at 54.5%, according to TradingView data.

Analyst "Crypto Nova" said the shift between rising and falling Bitcoin dominance is "when altcoins really start to shine."

That hasn’t happened yet, but “the higher highs and higher lows and strong candles are no longer there,” she said, adding that “the chart is moving sideways, which almost always precedes a reversal.”

Bitcoin Dominance. Source: Crypto Nova

Technical analyst “Crypto Titan” echoed this sentiment in an article published on X last week, saying “I personally believe there will be another altcoin season.”

The analyst mentioned the Ichimoku technical indicator, which they claim “will play a major role in stopping Bitcoin dominance, kicking off alt season.”

Meanwhile, analyst Kevin Svenson told his 140,000 followers in a post on X earlier this week that the altcoin market cap is “ready for a massive bull run.”“People often forget… that after the Bitcoin halving, the story turns,” he added.

Altcoins were trading mostly flat on the day as the total cryptocurrency market cap remained around $2.74 trillion.

Except for outliers such as Toncoin (TON), which recently hit a new all-time high, most high-cap altcoins are still down significantly from their 2021 peak prices.

XRP, Dogecoin, Cardano, Avalanche, Bitcoin Cash, Polkadot, and Chainlink are down at least 60% from their peaks, while Bitcoin is down less than 5% from its ATH.