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- Altcoin dominance shows strength after a rare buy signal, hinting at a potential altseason in Q4.
- Bitcoin’s declining dominance strengthens the case for an imminent altcoin rally, analysts suggest.
A recent tweet from famous crypto analyst Mikybull Crypto piqued curiosity about the possibility of a strong altcoin season in the coming months. He stated that the dominance of altcoins has grown significantly since a rare buy signal occurred.
#Altcoins dominance showing good strength after the rare buy signal flashed on.
This is the first time it has appeared on that macro capitulation channel since 2016.
Q4 is looking primed for Alts season. pic.twitter.com/oVBosjvIGU
— Mikybull 🐂Crypto (@MikybullCrypto) September 8, 2024
Altcoin Surge Anticipated as Rare Signal Flashes and Bitcoin Dominance Declines
This signal, he added, had not been seen in the macrocapitulation channel since 2016, making it an unusual and noteworthy occurrence. With this in mind, Mikybull Crypto predicted that the fourth quarter will be primed for what many in the market describe as “altseason,” in which altcoins surpass Bitcoin and achieve significant gains.
Also, Bitcoin’s market dominance has progressively declined and is now about 55.6%. This shift in dominance is a critical factor that analysts are constantly monitoring, as it frequently precedes an altcoin rally.
When Bitcoin’s dominance declines, it indicates that wealth is migrating into other cryptocurrencies, raising the prospect of a large altcoin surge.
Captain Faibik, another respected analyst, has also spoken out on the issue. As we previously reported, he predicts that altcoins will return after mid-September, following a significant decrease since March. Analysts such as Faibik feel that Bitcoin’s declining dominance enhances the case for an upcoming altseason.
Many traders and investors are cautiously optimistic that the present market patterns will result in a boom in cryptocurrency performance soon.
However, Faibik cautioned that the market could remain in a sideways trend for the next few weeks. This period of stalemate may present a difficult and unpredictable environment for investors as they consider the dangers of buying positions during a potential cryptocurrency surge.
The absence of apparent momentum in either direction has caused many market participants to exercise extreme caution, waiting for stronger signs before making major moves.
Furthermore, traders are increasingly speculating that TOTAL2, the index that measures the market cap of all cryptocurrencies excluding Bitcoin, would achieve a new all-time high. This would be a significant milestone for the altcoin market, potentially indicating the beginning of significant rises across a variety of altcoins.
Whale investors, who wield tremendous market power, have also begun to prepare for the anticipated rally. As buying pressure grows, it becomes clear that large-scale investors are expecting a significant increase in altcoin values.
