Investors in Bitcoin [BTC] have long anticipated the moment when the primary cryptocurrency would reach $100k, yet this milestone seems to be taking its time. Could this anticipation be prolonged even further? Recent developments suggest that BTC might step aside and pave the way for altcoins to take the spotlight in December 2024.
Is this an indication of an imminent resurgence in altcoin activity?
Declining Dominance of Bitcoin
Bitcoin has seen a period of consolidation around the $96k mark in recent days, resulting in a notable decrease in the coin’s volatility. This dwindling volatility has given rise to a significant development.
A prominent crypto analyst known as Captain Faibik recently posted a tweet highlighting this occurrence. According to the analysis, Bitcoin’s dominance has been following an upward wedge pattern since the start of 2022.
Recently, there was a breakout from this pattern, signaling a downward move and potentially paving the way for a surge in altcoin performance. Captain Faibik even hinted at the possibility of an altcoin season between 2024 and 2025 in the tweet.
Could the Altcoin Season Be Upon Us?
The diminishing dominance of BTC has opened up opportunities for altcoins to increase their market share. Speculations have been circulating about the likelihood of an upcoming altcoin season, with recent events hinting at a potential earlier start than anticipated.
It could potentially already be underway. For instance, Ethereum [ETH], a leading altcoin, displayed bullish momentum in the last 24 hours, with its price surging by over 3%. Other major altcoins also showcased promising performance.
Notably, XRP led the way with a remarkable 12% gain within the same 24-hour timeframe.
In addition, the altcoin season index surged to 67 at the time of reporting, a value close to 75 typically indicating the onset of an altcoin season.
Given Ethereum’s significant position in the altcoin market, CryptoCrypto aimed to analyze its on-chain data to ascertain the potential for a sustained bull run, which could be a strong indicator of an impending altcoin season.
Despite its recent price upswing, Ethereum’s NVT ratio has remained low, suggesting undervaluation and implying the possibility of continued price growth.
On reviewing the daily chart of the altcoin, it was observed that it was testing its resistance at that moment. However, there was a concern related to its Relative Strength Index (RSI) nearing the overbought territory, which might trigger selling pressure and hinder further upward movement for the token.
While various metrics and market conditions are aligning to support the likelihood of an altcoin season, the uncertainty remains whether this will materialize in the near future or not.