Altcoin Season Postponed Again: Will There Ever Be an Altseason?

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As a seasoned analyst with over a decade of experience in the cryptocurrency market, I’ve seen my fair share of bull and bear markets, altseasons, and everything in between. Currently, the charts are pointing towards a prolonged wait for a substantial altcoin rally, at least until Bitcoin‘s dominance continues to break down significantly.

Looking at the Total3 chart, it seems we’re stuck in a holding pattern, with the resistance at $1.16 trillion acting as a formidable barrier. If history repeats itself, we might even see a retest of the handle at $785 billion before any meaningful upward momentum can be sustained.

The Stochastic RSI on the chart is not providing much optimism either, with the indicator lines heading southward. Until these lines start to trend upwards again, the necessary price momentum will continue to elude us.

While there was a brief altseason window in early December, it was nothing compared to what we’ve seen in previous bull markets. The current chart at Blockchaincenter.net shows that we’re at a major support level, and a drop below this would further diminish the chances of an altseason.

The key here is Bitcoin Dominance (BTC.D). For the altcoins to truly take off, we need to see a significant breakdown of these support levels, with the bottom level resulting in a lower low. Unfortunately, given the current state of Bitcoin, it seems we’re in for a wait before this happens.

That said, I’ve learned never to underestimate the unpredictability of the crypto market. Who knows? Maybe we’ll see an altseason pop up out of nowhere like a sudden bull run after a Bitcoin tweet! But until then, it looks like it’s back to the drawing board for those hoping for a robust altcoin rally.

On a lighter note, remember what they say: “Only invest in altcoins during an altseason, and only invest in Bitcoin during a bear market.” Or so the joke goes! Keep your eyes on the charts and your fingers crossed for that elusive altseason!

It seems that Bitcoin’s monthly chart is showing bearish signs, indicating that the bulls might temporarily retreat until later in January. Meanwhile, it’s unlikely that altcoins will surge soon due to a delay in altcoin season. However, one may wonder if there will be a strong altcoin rally at any point during this bull market.

Flipping current resistance into support would be big for altcoins

The total market value of all cryptocurrencies aside from Bitcoin (BTC) and Ethereum (ETH) is represented by Total3. This makes it an ideal tool for assessing the performance of altcoins. As shown in the chart above, the upward momentum from the cup and handle chart pattern was abruptly halted at approximately $1.16 trillion, and then found support at the rim of the cup’s top edge.

As someone who has closely followed and analyzed market trends for many years, I have seen my fair share of ups and downs. Based on current observations, it is uncertain whether this trend will continue to be a significant factor moving forward. There is always a chance that the price could dip once more and revisit the $785 billion mark at the handle’s top, a level I have seen multiple times in the past. However, only time will tell what the market holds, and it’s essential to keep a close eye on developments as they unfold.

Currently, the market capitalization is strongly pushing against the resistance level of $939 billion. Overcoming this barrier could potentially rekindle the bullish trend for altcoins. Yet, the Stochastic RSI at the chart’s base shows the indicator lines moving downwards. Until these lines reverse direction and begin to climb again, the required price momentum may not be present.

No altseason in sight yet

As a researcher studying blockchain trends, I’ve observed that Blockchaincenter.net data reveals a brief altseason window around early December. Regrettably, it was quite fleeting and fell far short of the extended altseasons witnessed during previous bull markets. Presently, the chart indicates we’re at a significant support level. A fall below this point would significantly diminish the likelihood of another altseason occurring.

Bitcoin Dominance breakdown needs to continue

The dominance of Bitcoin (BTC.D) continues to indicate a breakout from an ascending wedge formation. As displayed on the chart, potential support points are highlighted. For alternative cryptocurrencies to surge significantly, these support levels must weaken and potentially break downwards, leading to a new low below the current one.

Regarding altcoins, their performance is largely influenced by Bitcoin’s trends. For an ideal “altcoin season,” Bitcoin should rise significantly and then stabilize for a while. However, it seems unlikely that this situation will occur in the next few weeks or so, which means the anticipated altcoin season may be delayed further.

Will we see an altcoin rally during this bull market? While it’s not certain, towards the end of the bull market, Bitcoin might reach a peak (blow-off top), causing its value to shift into other cryptocurrencies, potentially sparking another surge for altcoins. Could there be a ‘altseason’ prior to this? Yes, it’s theoretically possible, but this particular bull run seems to be following an unconventional pattern. The Bitcoin Dominance chart is crucial to observe in this case.

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2025-01-01 17:22