Altcoin Season To Begin: Analysts Predict Perfect Buying Zone as Bitcoin Dominance Peaks

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The post Altcoin Season To Begin: Analysts Predict Perfect Buying Zone as Bitcoin Dominance Peaks appeared first on Coinpedia Fintech News

After trading in red for the past few weeks, the crypto market is showing signs of a big opportunity for altcoin investors. With the altcoin market cap already plunged from a January high of $1.64 trillion to $931 billion, top analyst Darkfost believes that it is the perfect moment to buy altcoin as we’ve officially entered a “buying zone.”

On top of that, Bitcoin dominance is on the brink of a major collapse, hinting that altseason could be just around the corner!

Time To Buy Altcoins?

According to analyst Darkfost, current altcoin trading volumes have entered a key accumulation phase, making this an ideal time to begin buying altcoins using dollar-cost averaging (DCA).

Looking at the Darkfost shared chart, it shows a crucial trend in altcoin trading volumes. As it compares the 30-day trading volume for stablecoin pairs with the yearly average. When the 30-day volume drops below the yearly average, it has often been a good time to buy.

Right now, that signal has appeared again, suggesting that the market is in a buying phase. The last time this happened was in September 2023, just before altcoin prices started rising. 

Will Bitcoin Dominance Fall?

Bitcoin’s dominance (BTCD) plays a crucial role in determining whether the altcoin season is about to begin. Since hitting a cycle low in January, BTC dominance has been steadily rising and currently stands at 63.50%.

According to crypto analyst Mister Crypto, Bitcoin dominance has reached a key resistance level while following a rising wedge pattern. This pattern is often seen as a bearish signal, meaning a strong pullback could be coming soon.

Mister Crypto’s chart highlights a situation similar to 2021, when Bitcoin dominance dropped sharply. Back then, this decline led to a massive altcoin rally. If history repeats itself, Bitcoin dominance could see a significant drop, possibly by 30x.

Altcoin Season Index Hints Different Story 

However altcoin season index has dropped to a low of 18, signaling that altcoins are currently underperforming compared to Bitcoin. 

This index tracks the performance of the top 50 altcoins and compares their gains against Bitcoin. A low score means Bitcoin is dominating the market, while altcoins are struggling to keep up.

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