Altseason incoming? Altcoins broke out from this 3-year pattern
Altseason is how cryptocurrency traders call a specific moment in a bull market when most altcoins Bitcoin (BTC).
As it happened in previous cycles, Bitcoin leads each cycle’s impulse, starting an upward movement and increasing its dominance. Other cryptocurrencies then follow BTC leadership during its consolidation. Interestingly, this usually results in better individual performances than the leader, boosting Altcoin’s total capitalization.
After a profitable year for Bitcoin investors, analysts speculate if 2023’s altseason is about to start. Notably, BTC is up by more than 130% since November 2022, with 52% dominance, while altcoins’ total market cap lags behind.
One of these analysts answers on X for the pseudonymous Moustache (@el_crypto_prof). In particular, Moustache identified a possible breakout for altcoins from the Gaussian Channel, imitating a pattern from three years ago. The same pattern was also spotted in 2016, starting the first big altseason in history.
Altcoin market cap analysis suggests an altseason
The “CRYPTOCAP: TOTAL 2” index by TradingView, measures the total market capitalization of cryptocurrencies excluding Bitcoin. Mustache used this index in the analysis, registering a $664.66 billion market cap for altcoins.
Interestingly, a major altseason happened in the last two times when the altcoins’ market cap consolidated inside the Gaussian Channel in the weekly chart and broke out from it.
If the story repeats itself, it is also expected to see Bitcoin’s dominance (BTC.D) falling bellow the 50% zone, which has been kept since June 2023. BTC.D index reached its yearly high at 54.35% on October 25.
However, it is important to understand that past price actions are no guarantee of future behavior. An altseason might not happen even following a breakout from this channel. Demand plays a crucial role in impulsing altcoins’ market cap.
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