Another Delay for Altcoin Season: Is an Altseason Ever Coming?
With Bitcoin ($BTC) showing a notably bearish monthly candle, it seems the bullish momentum might be taking a pause, at least until later in January. Naturally, this means altcoins aren't expected to surge anytime soon, as the anticipated altcoin season faces yet another delay. Will this bull market ever deliver a significant altseason?
Turning Resistance into Support Could Boost Altcoins
Source: TradingView
Total3 represents the total market cap of all cryptocurrencies, excluding $BTC and $ETH, making it a great indicator of altcoin performance. In the chart above, we can see that the breakout from the cup and handle pattern stopped abruptly at $1.16 trillion, and the subsequent correction found support at the cup's upper edge.
It remains uncertain whether this will continue to act as a significant support level. There's also a chance the price could drop to retest the handle's top at $785 billion.
The market cap currently faces resistance at $939 billion. Breaking through this level could signal the continuation of the altcoin bull market. However, the Stochastic RSI at the bottom of the chart shows downward-moving indicator lines. Until these lines reverse and climb, the price momentum needed will be absent.
Altseason Still Not on the Horizon
Source: https://www.blockchaincenter.net/
According to Blockchaincenter.net, there was a brief period of altseason in early December, but it was fleeting and nothing like the altseasons seen in previous bull markets. The chart currently shows the indicator at a critical support level. If it falls below this, the odds of an altseason diminish even more.
Bitcoin Dominance Needs to Continue Declining
Source: TradingView
Bitcoin Dominance (BTC.D) is currently experiencing a breakdown from the ascending wedge pattern, with support levels indicated on the chart above. For altcoins to truly take off, these support levels must be broken downward, creating a lower low.
Ultimately, Bitcoin's behavior heavily influences altcoins. Ideally, a strong Bitcoin surge followed by a period of stability would set the stage for a robust altcoin season. However, this scenario seems unlikely for the coming weeks, meaning altseason remains on hold.
Is an altseason possible later in this bull market? While nothing is certain, there's a chance that after Bitcoin reaches its potential peak, a substantial amount of its value could flow into altcoins, sparking one last surge. Could an altseason occur before then? It's possible, but this bull cycle is unfolding differently from past ones. Keep an eye on the Bitcoin Dominance chart for clues.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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