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Bitcoin Dominance is a key indicator that has fallen below its two-year trendline.
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Analysts call this a confirmation of a new “alt-season” in progress.
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Major altcoins such as Ethereum, XRP and Cardano have already posted double-digit weekly gains.
One top analyst has just declared that the long-awaited altcoin season is now officially underway after a key indicator for crypto market flashed.
In a recent post, the analyst noted in X that most altcoins had now broken resistance levels. They also printed massive green candle to mark a brand new phase of the crypto market bullrun.
CaptainFaibik wasn’t the only analyst who predicted this altseason. CoinEdition reported on two others.
BTC Dominance drops, ETH reclaims $4,000 support
The analyst used a reverse indicator to highlight a significant development in the weekly Bitcoin chart. The key metric showed a significant drop that indicated a break under its two-year trendline.
According to TradingView data, Bitcoin’s dominance fell from 66% to 60 % in less than two month, indicating a capital shift from the pioneer cryptocurrency market to the altcoin markets.
Ethereum, the biggest altcoin based on market capitalization, led this week’s rally by surging by over 20%. The flagship altcoin recovered from a notable drop, rebounding off support at $3354 to reach $4,206, amid increasing bullishness. Ethereum’s recent rally allowed a return above a crucial $4,000 psychological threshold, leaving its supporters with high expectations and a strong expectation of further upward movement.
Top altcoins following Ethereum’s pattern
Some altcoins have reclaimed crucial levels by converting resistance into support. XRP, for example, recovered from a recent drop after Ripple officially filed a dismissal of the long-running litigation between it and the SEC. The payment-focused cryptocurrency broke above the $3 resistance, and turned it into support.
ADA, meanwhile, soared 15% this past week and returned to above $0.8. This level is crucial because of the altcoin’s history around this area. Solana was trading at $181 as of the time of this writing, after successfully returning above the $180 resistance.
The total altcoins market cap grew by 13% in the last week, amidst a bullish trend. Most analysts expect this metric to rise, reflecting their belief that altcoin demand could increase to sustain the emerging altseason.
How do these indices work? BTC Dominance is only one of the signals. Here’s what happened when the “Altcoin Season Index” dropped.
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