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Is altcoin season about to erupt?

Is altcoin season about to erupt?

CryptodailyCryptodaily2024/01/15 15:02
By:Laurie Dunn

Table of Contents

  • It’s Altcoin Season!
  • $ETH Dominance at resistance
  • Total market cap at $1.6 trillion
  • More than $100 billion to flow into altcoins?

 

Bitcoin (BTC) looks to have topped out, bitcoin dominance is waning, and ethereum (ETH) dominance is looking strong. Are these all signs that the altcoins are about to erupt?

It’s Altcoin Season!

Is altcoin season about to erupt? image 0

Source: Blockchaincenter.net

According to the graph over at Blockchain Center, we have just entered altcoin season. Crossing the 75 level and into altcoin season territory is defined by the top 75% of the top 50 altcoins performing better than $BTC over the last 90 days.

$ETH Dominance at resistance

Is altcoin season about to erupt? image 1

Source: Trading View

The $ETH dominance chart is extremely important when looking at signs for an altcoin season. $ETH dominance told two tales through the course of 2022 and 2023. It started climbing from the middle of 2022, and continued this into 2023. However, in mid-2023 the trend became downwards. Going into 2024 $ETH is looking to reverse this trend and once more get above the long term trend line stretching back to 2020.

Total market cap at $1.6 trillion

Is altcoin season about to erupt? image 2

Source: Trading View

The Crypto Total Market Cap chart contains the market cap of $BTC as well as that of all the cryptocurrencies. However, it’s also a good barometer of how the altcoins are doing, and if bitcoin dominance is going down, and as more money is entering into crypto, a bigger percentage of this must be going into the altcoins. 

More than $100 billion to flow into altcoins?

Is altcoin season about to erupt? image 3

Source: Trading View

That being said, by far the best chart for identifying a move from the altcoins is the Total3 chart. This excludes the market cap of $BTC and $ETH and so is purely altcoins.

Support has been made above $472 billion, and the market cap is up against resistance now at $501 billion. A break of this level would leave the path clear for an upward move of more than $100 billion and a potential sortie into the territory of a full-on alt season . 

There are many factors to take into account so traders should be extremely cautious as always and carry out proper risk management. The market can also fall, so traders should factor in the negative scenario as well.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

1

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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