Here are the Top Two Reasons Why a Strong AltSeason is on the Horizon
The post Here are the Top Two Reasons Why a Strong AltSeason is on the Horizon appeared first on Coinpedia Fintech News
The crypto space is desperately waiting for a major change in the markets, which usually begins with the beginning of an Altseason. It is when the majority of the altcoins soar, outperforming the star crypto, Bitcoin. This usually takes place when the BTC price calms down after undergoing a massive rally and recording huge dominance. This gives the other altcoins some momentum, which may lift the rally, resembling an Altseason.
Below are the two major indicators that validate that the beginning of the AltSeason is about to flash positive signals.
Bitcoin Dominance at Dire Strait
Bitcoin dominance has been trading within a descending parallel channel ever since it faced a rejection from the highs above 55%. With the latest price action, the dominance has soared, breaking above the upper resistance of the channel. No doubt it is a bullish sign for crypto, but the positioning of RSI raises concerns.
Each time the RSI enters the over-bought levels, it has resulted in a bearish pullback, hitting the lower support. The dominance has also suffered a massive setback. Hence, larger possibilities of a bearish pullback emerge; however, a breach beyond 55% may squash the bearish narrative.
Ethereum Price Displays Acute Strength
Ethereum is largely considered the backbone of DeFi and the majority of the altcoins. The growing strength of the ETH price usually revives the bullish trend among the altcoins. The second-largest token largely follows the trend set by Bitcoin, which is in turn followed by the other tokens. The latest price jump elevated the levels beyond the crucial resistance price zone and as the Bollinger bands have already broken out, an extended bullish case emerges.
Therefore, the price is believed to reclaim levels beyond $2600 as the MACD continues to remain within the bullish range. Collectively, the current trade set-up indicates the growing possibility of an Altseason, as the BTC dominance could witness a drop and the Ethereum price is gaining strength.
Filed under: Bitcoin - @ February 12, 2024 3:25 pm