Recent price trends show that the altcoin market appears to be approaching positive territories as major altcoins are slowly recovering their upward trajectory, sparking a resurgence in the market. As Bitcoin’s supremacy shows signs of peaking, many analysts believe that momentum may be shifting in favor of smaller-cap crypto assets.
Market Dominance Shifting Toward Altcoins?
With shifting market dynamics and Bitcoin’s dominance facing resistance, altcoins are preparing to take center stage. Alphractal, an advanced platform for investment and data analysis, reported the change in momentum toward adults, indicating a renewed adoption of the tokens.
Similar market circumstances have previously caused altcoin values to soar, suggesting a possible change in capital flow from BTC toward alternative digital assets. These tokens tend to see a surge following BTC’s consolidation or entry into a less volatile period, of which current market dynamics are reflecting those trends.
According to the platform, alts might outperform Bitcoin as they may stabilize shortly. Altcoins frequently see more precipitous declines during Bitcoin downtrends. However, BTC often bounces back more quickly than these assets during recoveries.
With a rise in Bitcoin’s price from $89,000 to $97,000 in the last 24 hours, the Altcoin Season Index indicates that the market may be approaching a phase where alts could begin to rebound. As traders look for a variety of opportunities in the cryptocurrency industry, this trend might signal the start of a big surge for the assets.
This is because such patterns have preceded significant recoveries in the past, offering the chance for substantial growth across the broader crypto ecosystem. Given that alts are approaching a recovery phase, this development hints at a renewed interest in the tokens among new and existing investors.
Such a positive development in the alts market might fuel heightened speculations about an impending alt season within the community. However, the general market is presently experiencing a rebound, with BTC leading the charge.
While Alts eyes recovery, the platform has cautioned that this move does not necessarily mean a definitive Altcoin Season for the long term. Rather, it implies a brief rebound, which may present great opportunities for Swing and Scalping trading.
A Bullish Chart Pattern Develops For Alts
As bullish sentiment arises, technical expert and trader Titan of Crypto has forecasted an imminent huge rally in the altcoin market. The expert predicted as he spots a fully formed bullish pattern, particularly the Cup and Handle formation in the 2-week time frame.
Examining the formation, Titan of Crypto noted that the pattern is unlikely to survive indefinitely if alts continue to decline. Meanwhile, a retest of the previous resistance line could present the ultimate opportunity for an upswing. Should the trigger an uptrend, the analyst expects a rally to about $2.4 trillion market cap.
Featured image from Unsplash, chart from Tradingview.com
Read the full article here