With Bitcoin’s remarkable dominance of the crypto market, speculations were whether an Altcoin Season (Altseason) could occur in the ongoing bull cycle. However, recent developments are pointing to a possible altseason, which crypto experts believe could be one of the biggest phases for alts so far.
Bitcoin Correlations With Altcoins Weakens
As current market trends fluctuate, key indicators are starting to point to a potential shift from a Bitcoin season to an Altcoin Season. João Wedson, an on-chain expert and founder of the analytics platform Alphractal, shed light on the likelihood of an altseason, claiming it is happening this cycle.
After delving into the Altcoin Season Index vs Bitcoin, the on-chain expert noted that the cryptocurrency market may be on the cusp of a major shift. Presently, the market is about to reach a point where a large number of altcoins will no longer follow Bitcoin’s trajectory as often observed in past cycles.
According to Wedson, these digital assets are now charting their own path, stating they’ve become stubborn, suggesting a unique season for alts. This increasing decoupling from Bitcoin’s price trajectory has sparked new conjecture that an altseason, which is traditionally characterized by notable gains in non-BTC assets, may be rapidly approaching.
The expert stated that while BTC is at all-time highs, most altcoins have limited room to fall, with the exception of a few of the top market-cap coins. Such a development usually marks the beginning of a phase in which capital begins to flow into non-BTC assets.
Considering the current trend, the expert is confident that an altseason at this point is inevitable. When the season finally occurs, it is expected to run quickly, and the rotation will continue regardless of whether BTC’s price rises or falls in the near future.
In the meantime, Wedson has issued a stark warning to investors about potential volatility as they continue to hold on to Bitcoin and stablecoins in the current market state. “From a big trader or fund manager’s perspective, there’s little sense in holding BTC or stablecoins exclusively right now,” the expert stated.
A Massive Altseason On The Horizon
A recent analysis from crypto analyst and trader Mags reveals that the crypto market is about to enter an altcoin season in the following weeks. His bold analysis is based on past cycle trends involving an RSI (Relative Strength Index) + MACD (Moving Average Convergence Divergence) Confluence.
Following an RSI + MACD confluence in the 2021 market cycle, BTC witnessed a sharp decline in its market dominance, which paved the way for an altseason. With the setup reappearing, the analyst anticipates a similar result. However, this time, Mags claims that the development might lead to the biggest altseason of this cycle.
Featured image from Getty Images, chart from Tradingview.com
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