altcoin A season is how cryptocurrency investors describe a specific moment in a bull market when most altcoins outperform Bitcoin (BTC).
As in previous cycles, Bitcoin leading each cycle, initiating an upward movement and increasing its dominance. Other cryptocurrencies then follow BTC’s lead during consolidation. Interestingly, this often results in better individual performances from the leader and increases the total capitalization of the Altcoin.
After a profitable year for Bitcoin investors, analysts are speculating whether 2023’s altcoin season is about to begin. Notably, BTC is up more than 130% since November 2022, with a 52% lead, while the total market cap of altcoins is lagging behind.
One of these analysts responds to X under the pseudonym Mustache (@el_crypto_prof). Notably, Mustache identified a possible breakout for altcoins from the Gauss Channel, mimicking a pattern from three years ago. The same formation was seen in 2016 and started the first major subseason in history.
“CRYPTOCAP: TOTAL 2” index prepared by TradingView, excluding Bitcoin crypto- It measures the total market value of currencies. Mustache used this index in his analysis and recorded a market cap of $664.66 billion for altcoins.
Interestingly, there has been a major altcoin season the last two times when the market cap of altcoins consolidated within and broke out of the Gaussian Channel on the weekly chart.
If the story repeats, Bitcoin’s dominance (BTC.D) is also expected to fall below the 50% zone that has been maintained since June 2023. The BTC.D index reached its highest level of the year with 54.35% on October 25.
Koinfinans.com As we have reported, it is important to understand that past price movements are no guarantee of future behavior. Even after a breakout from this channel, an altcoin season may not occur. Demand plays a crucial role in increasing the market value of altcoins.