NewsBTC’s latest report reveals that despite Bitcoin reaching a new all-time high last week, the spotlight was stolen by the so-called altseason. This is evident as major altcoins experienced significant price surges, even as Bitcoin witnessed a minor dip.
PlanD, a renowned market analyst, has shared his insights on the unfolding altseason. He identifies three key markers that would signify the onset of an altseason.
Firstly, he suggests that a healthy pullback in both Bitcoin and Ethereum could be an early indication. Specifically, retracements to the $111,000 and $3,250 regions for Bitcoin and Ethereum respectively, could trigger capital rotation from Bitcoin to altcoins, thereby lowering Bitcoin dominance (BTC.D).
PlanD asserts that such a circumstance, far from being a sign of weakness, could potentially accelerate the wider crypto market’s growth. Specifically, if Ethereum manages to find support at $3,250, it could lead to the strengthening of the ETH/BTC pair, which often precedes altcoin overperformance.
The third and most crucial signal, according to PlanD, lies in Bitcoin dominance. He notes that BTC.D has recently broken below its long-held support trendline, suggesting a potential shift in the market structure. A key test will be at the 63.40% dominance level. If BTC.D fails to reclaim this level, it could signal the beginning of a new downtrend in dominance, marking the start of altseason.
In such a scenario, PlanD anticipates strong bullish momentum in tokens associated with sectors like Real-World Assets (RWA), Artificial Intelligence (AI), and gaming, beyond the major and mid-cap tokens on popular blockchain platforms.
As of now, the total crypto market cap stands at $3.83 trillion, with a slight decline of 0.20% recorded in the last 24 hours. CoinMarketCap data shows the Fear & Greed index at 69, indicating a substantial risk appetite among investors, while the altseason index is at 42, suggesting a growing market preference for altcoins.
