The recent downturn in the cryptocurrency market has left many crypto marketers speculating about the future of the industry and the potential for an altseason. Amidst this uncertainty, analyst Cryptex Guy shared his thoughts on the possibility of an altcoin season in a recent post on X.
In this article, we will delve into the analyst’s analysis of the altcoin season, Bitcoin dominance, stablecoins, Ethereum’s position, and more.
BTC Dominance + Stablecoin Mix:
The analyst’s chart showcasing the BTC.D + USDT.D + USDC.D combo highlights the significant amount of money currently allocated outside of altcoins. Historically, when this metric approaches the 74–75% range, it has acted as a trigger point for sharp rallies in altcoins as it faces resistance from that level.
Currently, Bitcoin dominance sits at 70.87%, and a potential move into the red zone followed by rejection could signal a capital rotation into altcoins. A break below the ascending trendline would confirm the end of Bitcoin’s dominance, paving the way for a full-fledged Altseason similar to the mini alt-run witnessed in Q4 2024.
BTC Dominance on Lower Time Frame:
On the 4-hour chart, BTC Dominance has broken out of a rising wedge pattern, typically bearish for Bitcoin dominance. Since altcoins tend to move inversely to BTC dominance, this breakout could lead to a short-term relief rally in altcoins.
Currently, BTC.D is retesting the upper boundary of the wedge pattern. If this retest is rejected, we may see a quick 5–10% upside movement in strong altcoins. This aligns with Ethereum’s recent surge above $1000, injecting $138 billion into the altcoin ecosystem.
Ethereum’s Retest & the Bigger Altseason Picture:
On higher time frames, Ethereum has reclaimed a significant multi-year trendline known as the Bull-Bear boundary. A successful reclaim could boost investor confidence and potentially drive sustained inflows into altcoins.
The altcoin market is also showing signs of a bullish structure. If this pattern holds, it could set the stage for Altseason 2025, with many altcoins potentially experiencing 2–3x gains from current levels. This scenario mirrors previous patterns from 2023 and 2024 when capital rotation into altcoins led to broad market upside.
In conclusion, the potential for an altseason seems to be on the horizon, with key indicators and technical analysis pointing towards a shift in market dynamics. As we await further developments, it’s essential to stay informed and monitor the market closely for potential opportunities.
If you are interested in learning more about the altcoin market and potential investment opportunities, be sure to follow updates from analysts like Cryptex Guy and stay tuned for more insights into the evolving crypto landscape.