It may be time for the crypto investors to enter the “altcoin season,” which is defined as a specific moment when most altcoins outperform Bitcoin (BTC) in a bull market. According to experienced crypto analyst Moustache, if altcoins repeat a formation breakout from three years ago, a strong altcoin season could occur.
Famous Formation Gives Signal for Expected Rise in Altcoins
As in previous cycles, Bitcoin leads each cycle by initiating an upward movement and increasing its dominance over the market. Altcoins start following BTC’s leadership after consolidating during this process. Interestingly, altcoins tend to outperform the largest cryptocurrency during this period.
After a highly profitable period for Bitcoin investors, analysts speculate whether an altcoin season is about to start before the end of the year. Especially, BTC’s dominance reaching 52% since November 2022 and its value increasing by over 130% triggers comments that it is now altcoins’ turn.
Crypto analyst Moustache identified an important breakout for altcoins from the Gauss Channel by imitating a formation from three years ago. The same formation was also broken in 2016, initiating the first major altcoin season in history.
Market Value of Altcoins Signals Another Altcoin Season
The “CRYPTOCAP: TOTAL 2” index provided by TradingView measures the total market value of altcoins excluding BTC. In Mustache’s analysis, this index indicates a market value of $664.66 billion for altcoins. Remarkably, 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, Bitcoin’s dominance is expected to 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 25.
At this point, it is important to note that past price movements do not guarantee future repetitions. Even after a breakout from the Gauss Channel, an altcoin season may not occur. Demand plays a crucial role in increasing the market value of altcoins.
