While Bitcoin price has improved market sentiment with its recent rise, altcoin The market continues to gain strength. As the rise in BTC price stagnated, it started trading in a narrow range. While the price remains stagnant, BTC dominance has also begun to wane, signaling a possible “altcoin season.”
Long-term dominance is testing key levels, indicating that levels are facing major upward pressure. Having previously faced two rejections in a row, their dominance level is closer to registering another one. If levels show a new rejection from crossover resistance, it could lead to a close to 40% drop at support. This may be the first signs of a new season.
In the long term, Bitcoin dominance is testing diagonal support and also faces rejection from the upper resistance of the ascending wedge. Two bearish signals can also be seen on the chart, indicating that dominance may soon test the intermediate support around 51%. If the level falls from here, it will lead to a long pullback below 50%, to 49% or even close to 48%. This could force market participants to switch to altcoins and ultimately trigger a good season.
Additionally, the altcoin market capitalization is closer to reaching a good consolidation zone that may even include a few pullbacks. These declines can be considered as a good buying opportunity and may be the last chance to buy altcoins at these levels. Analyst Captain Faibik advises people to buy and hold assets patiently as the continuation of the altcoin season could be triggered in the first quarter of 2024. does.