3 Charts are Showing Altcoin Season Likely to Return in Next Few Months!

in crypto •  7 months ago  (edited)

Warning signs are flashing for the Bitcoin Dominance Index.

Well, warning signs if you are a bitcoin maximalist.

The Bitcoin Dominance Index is a measure of bitcoin's value compared to the entire crypto market's value.

Many traders looking to grow their BTC stockpile rely on the dominance index to analyze how altcoins will perform against the king of cryptocurrencies.

If the index is in an uptrend, it means that other coins are likely to perform poorly against bitcoin, in a downtrend and it means they are likely to perform well against bitcoin.

As you might have guessed, bitcoin's dominance index has been increasing during this latest bull run, but it's showing signs of weakening at a crucial resistance point:

As you can see the index has been steadily sliding from the upper left to the lower right, a downtrend.

If this trend continues, we would expect to see the bitcoin dominance index fall over the coming weeks and months as it is at a crucial inflection point right now.

Another confirmation...

If that resistance line wasn't enough, we are also in the "over-bought" range on the RSI chart.

Check it out:

As you can see on the above chart, most of the times the RSI got to these levels over the last 5 years, the bitcoin dominance index started trending down shortly afterwards.

By itself, neither of these indicators are super strong patterns, but combining them I think we are starting to see a strong possibility emerging...

The altcoin chart seals the deal!

Finally, to cement the view that altcoins are likely to have their time in the sun, we take a look at the altcoin chart.

It is a chart of the entire crypto market cap not including bitcoin.

Check it out:

It almost appears like the altcoin market is forming an inverse head and shoulder pattern on the RSI.

Unlike the bitcoin dominance chart shown at the top, it still has quite a bit of room before it gets into the "over-bought" range on the RSI.

Plus we have a nice rounding bottom taking place on the altcoin chart seen above.

Combining these 3 charts and I believe we are likely to see a return of bullishness in the altcoin market over the next couple months.

June and July may be very good to steem if this pattern plays out!

Stay informed my friends.

*Charts courtesy of TradingView / CoinSignals

-Doc

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absolutely awesome work my man.

Thanks! Now it just has to play out. :)

The altcoin chart says it all. it looks just like bitcoin 2015 to late 2016.

Yep, I agree. My takeaway is that the altcoins are likely to go up with or without bitcoin in the near future here.

yeah its been a real shakeout, its all been healthy though LONG TERM.

Yep I agree. Especially with some of the scam projects and vaporware going to zero. Probably still need more of that to be honest.

Actually I am not good at reading charts. Does it mean bitcoin is expected to again fall in price soon

No, not really, it just means that altcoins are expected to gain in the near future.

its doesn't have any correlation to the Bitcoin price, but basically Bitcoin is going nowhere but up anyway. It means Altcoins are going to do what altcoins do, become crypto assets regardless.

Exactly, thanks!

Let us really hope what the future will hold

Damn! Who wants to wait months 🧐

So impatient...

I can't wait until masternodes start spitting out Rolex's!

Posted using Partiko Android

Looking forward to those days again as well!

Nicely presented and a solid looking case. Now we just have to wait and see :)

Yep, we can use all the patterns and logic in the world, but if it doesn't actually happen, it doesn't mean a darn thing. :)

Great charts! Dominance is something I closely follow as well and I think that below 50% will be that clear signal for an altcoin rally!

Posted using Partiko iOS

You may be right. The trend seems to be down for bitcoin dominance overall...

Waited so long for signs like this. Thanks for this informative post.

You got it, hopefully it plays out.

Wao... Great analysis man. But I still greatly believe that altcoins prices moves with Bitcoin. Let's take a look at some alts such as Ethereum and Veil. For the past weeks, these coin prices have been in swings bitcoin prices. In as much as altcoins have their bull season, I still believe majority swing along side Btc.

There is a lot of history backing up altcoin season and how it tends to play out. Anything can change of course, but I am referring to historical patterns and trends.

This is amazing! But the fact still remains that some potential altcoin projects like veil and others will moon with bitcoin.

Not sure about the specific ones, but usually most of the coins in top 100 should do well during this season, at the very least.

  ·  7 months ago (edited)

This is definitely a sign that everyone should get their bags now. Buy up good low cap gems that can bring you profit in the alcoin season. I'm all in on Veil coin..... Make some research and buy up a good potential coin.

Never heard of it.