Altseason incoming? Three key indicators to watch for potential upside

Bitcoin (BTC) the recent rise to an all-time high of $73,750, followed by a pullback to $61,000, has sparked discussions between cryptocurrency enthusiasts and experts on the potential appearance of an “Altseason”.

Traditionally, Bitcoin triggers market cycles with robust surges, but the real action often takes place during its consolidation phases, when other cryptocurrencies usually takes the lead. This trend is expected to be more pronounced due to several factors that are driving wider adoption and improving the valuation of altcoins.

The integration of decentralized finance (Challenge), advances in blockchain scalability and the growing use of smart contracts are key factors contributing to a potential altcoin rally, which could significantly change the dynamics of the cryptocurrency market.

Key market indicators to watch

Market analysts are closely monitoring a set of key factors indicators this could signal the start of an altcoin rally.

The first of these is the exponential moving average (20-day EMA), which emphasizes recent price changes and is crucial for timing potential rallies. A bullish The EMA20 total crypto market cap crossover suggests a rally could be imminent.

Another critical indicator is the Stochastic RSI, which evaluates the strength and weakness of the relative strength indicator (ROI) over a specific period. A bullish crossover in this metric suggests that altcoins could be preparing for significant price movements.

If the total crypto market cap “retests” the EMA20 while “crossing higher” on the Stochastic RSI, this could lead to a “rally time”. according to to the pseudonymous crypto trader Titan of Crypto.

Additionally, Bitcoin market share, as measured by Bitcoin dominance, provides insight into overall investor sentiment and risk appetite.

Currently, Bitcoin dominance stands at 52.92%. A drop in this figure could signal a shift in investor interest towards altcoins, potentially marking the start of a new season.

This adds to the altcoin’s total market capitalization – which excludes the top 10 cryptocurrencies – down 17.55% over the past 30 days to $266.47 billion, according to data from Trading View

Despite this decline, the market is still holding above the $250 billion support level, suggesting that it is positioning itself for a future upward move. Underlines trader Rekt Capital.

Expert Predictions and Market Sentiments

Expert opinions on the potential for a new season are mixed, with some analysts predicting the start of the season. the largest altseason could reach a market capitalization of $4 trillion.

However, other analysts, such as Benjamin Cowen, have note that current market conditions do not strongly indicate an impending new season, suggesting that Bitcoin could continue to dominate the markets for a longer period.

This sentiment is echoed by the Blockchain Center’s Altcoin Season Index, which declares an altseason if 75% of the top 50 coins outperform Bitcoin over the past 90 days.

Altcoin Season Index. Source: Blockchain Center.

The index shows that only 41% of the top 50 altcoins have outperformed Bitcoin over the past 90 days. As the index is below 75, this suggests that it is not officially altcoin season yet, providing a more cautious outlook amid enthusiastic forecasts.

Although there are promising signs of a new season ahead, the cryptocurrency market remains inherently unpredictable.

Investors should remain vigilant and informed of market trends and changes. It is crucial to carefully study and analyze altcoin projects when creating investment positions in order to maximize potential gains while effectively managing risks.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.

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