Cryptocurrency analyst Kevin Svenson shared his views on a potential “altcoin season” where altcoins significantly outperform Bitcoin (BTC) in the cryptocurrency market. In his latest video, Svenson explained to his 78,600 YouTube subscribers why he believes this altcoin season is approaching.
Why Svenson Believes Altcoins Will Rise
Svenson’s belief in a bullish trend for altcoins is largely influenced by the recent price movements of Bitcoin and altcoin Ethereum (ETH). He notes that Bitcoin has broken its parabolic trend and is currently moving sideways, entering a consolidation phase. Meanwhile, the leading altcoin Ethereum is maintaining an exponential trend. Svenson suggests that this divergence indicates a critical point where altcoins might start catching up with Bitcoin.
Since the beginning of 2023, Svenson’s focus has primarily been on Bitcoin due to significant developments like BlackRock’s spot Bitcoin ETF application, the approval of this ETF, and the Bitcoin halving. These events strengthened Bitcoin’s narrative, but Svenson believes the narrative is now ready to shift towards altcoins.
Another important factor Svenson highlights is the Bitcoin dominance (BTC.D) indicator, which measures Bitcoin’s market value compared to the rest of the cryptocurrency market. A drop in the BTC.D indicator typically signals that altcoins are gaining value faster than Bitcoin.
Altcoin Season May Begin
Svenson observes that BTC.D has started to decline on the weekly chart, reaching lower highs and breaking the trend line, although it has not yet reached a lower low. Historically, such patterns in BTC.D have indicated the start of altcoin seasons.
Svenson’s analysis, based on both technical indicators and market narratives, warrants close attention. Bitcoin’s consolidation phase and Ethereum’s exponential growth create a favorable environment for altcoins to rise. The decreasing Bitcoin dominance further supports the possibility of an upcoming altcoin season.
At the time of writing, the flagship cryptocurrency Bitcoin is trading at $60,928. The new resistance for Bitcoin is at $62,000. The BTC price has tested this resistance several times but has pulled back shortly after briefly surpassing it.
