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With Bitcoin’s outstanding supremacy in the crypto market, speculations arose regarding whether an Altcoin Season (Altseason) might take place in the current bull cycle. Nevertheless, recent occurrences indicate a potential altseason, which cryptocurrency analysts believe could be among the most significant phases for alts to date.
Bitcoin Relationships With Altcoins Diminishes
As present market dynamics shift, vital signals are beginning to suggest a possible transition from a Bitcoin phase to an Altcoin phase. João Wedson, a chain analysis expert and founder of the analytics service Alphractal, illuminated the probability of an altseason, asserting it is underway this cycle.
After investigating the Altcoin Season Index against Bitcoin, the on-chain specialist remarked that the cryptocurrency market may be on the verge of a significant transformation. Currently, the market is about to arrive at a point where numerous altcoins will increasingly drift from Bitcoin’s path, as typically observed in former cycles.
Wedson indicated that these digital currencies are now forging their own routes, claiming they’ve become persistent, suggesting a distinct season for alts. This rising separation from Bitcoin’s price movement has ignited new speculations that an altseason, traditionally marked by significant upticks in non-BTC assets, may be swiftly approaching.
The expert expressed that while BTC is experiencing all-time high levels, most altcoins have little room to decline, excluding some of the top market-cap currencies. Such a situation often signals the initiation of a period in which funds begin to circulate into non-BTC assets.
Given the ongoing trend, the expert is assured that an altseason at this juncture is unavoidable. When the season finally arrives, it is anticipated to occur swiftly, and the rotation will persist regardless of whether BTC’s price ascends or descends in the near term.
Meanwhile, Wedson has issued a strong caution to investors regarding potential volatility as they maintain their positions in Bitcoin and stablecoins in the current market environment. “From the perspective of a significant trader or fund manager, holding only BTC or stablecoins at this moment makes little sense,” the expert remarked.
A Significant Altseason On The Horizon
A recent evaluation from crypto analyst and trader Mags indicates that the cryptocurrency market is on the brink of entering an altcoin season in the upcoming weeks. His audacious assessment is grounded in historical cycle tendencies involving an RSI (Relative Strength Index) + MACD (Moving Average Convergence Divergence) Confluence.
Following an RSI + MACD confluence in the 2021 market cycle, BTC faced a steep drop in its market dominance, setting the stage for an altseason. With the configuration reemerging, the analyst expects a similar outcome. However, this time, Mags asserts that the scenario could result in the most substantial altseason of this cycle.
Featured image from Getty Images, chart from Tradingview.com
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