Perhaps it’s time for crypto investors to enter the altcoin season. This period is defined as a special moment when altcoins surpass Bitcoin (BTC) and perform better in a bear market. According to experienced crypto analyst Moustache, if altcoins repeat a formation from three years ago, a strong altcoin season could be experienced.
At the beginning of each cycle, Bitcoin increases its dominance in the market and initiates a bullish movement, while altcoins start to follow the leadership of BTC after consolidating in this process. Interestingly, altcoins tend to surpass Bitcoin, the largest cryptocurrency, during this period.
After a quite profitable period for Bitcoin investors, analysts speculate whether an altcoin season will begin before the end of the year. Especially, the fact that BTC’s dominance reached 52% since November 2022 and its value increased by more than 130% triggers comments that it is now the turn for altcoins.
Crypto analyst Moustache identified a significant breakout for altcoins by mimicking a formation from three years ago using the Gauss Channel. The same formation was also broken in 2016 and initiated the first major altcoin season in history.
The “CRYPTOCAP: TOTAL 2” index provided by TradingView measures the total market value of altcoins excluding BTC. According to Moustache’s analysis, this index shows a market value of $664.66 billion for altcoins. Particularly, the market value of altcoins consolidated within the Gauss Channel on the weekly chart and experienced a major altcoin season in the last two breakouts.
If the same story repeats, it is expected that Bitcoin’s dominance will fall below the 50% level it has maintained since June of this year. Bitcoin dominance reached its highest level of the year at 54.35% on October 25th.