Analysts eye altseason as Bitcoin dominance ‘massive decline is around the corner’
Bitcoin (BTC) is again struggling close to the $100,000 price level, while analysts expect a crypto altseason to start. An altseason, also known as altcoin season, is a market phenomenon marked by other cryptocurrencies significantly outperforming the leader BTC.
The Bitcoin dominance (BTC.D), measured by Bitcoin’s share of the cryptocurrency market capitalization, is a canary for an altseason. Looking at this leading metric, some crypto analysts like Mikybull believe a “Bitcoin dominance massive decline is around the corner.”
Indeed, the analyst believes that the BTC.D chart formation with three-day candlesticks signals a clear top, forecasting a decline. This could be “huge for an altseason,” in Mikybull’s words – an opinion also shared by other traders and analysts.
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Other analysts who expect an altseason (atcoin season)
Also looking at a potential Bitcoin dominance decline, the prominent crypto trader Michaël van de Poppe expects an altseason soon. He shared this vision on January 16, mentioning BTC consolidating at $100,000 after a correction to $88,500.
According to him, “Altcoins have seen a strong move upwards,” predicting “Bitcoin dominance to fall.” Van de Poppe predicts this strong momentum for altcoins to continue in the coming weeks.
Moreover, the long-term crypto and stock investor who goes by Jelle on X highlights a bullish pennant pattern for altcoins. In particular, he is looking at a potential breakout of the altcoins’ total market cap of its all-time high resistance.
“Altcoins have broken out from the daily bullish pennant! Running straight into all-time high resistance here — once that breaks, the sky is the limit. Strap in boys, we’re in for one heck of a ride.”
– Jelle
These bullish expectations are also aligned with recent news that hint at Donald Trump considering adding US-based altcoins to the United States Treasury reserves, instead of only Bitcoin, as many enthusiasts first thought. On that note, Michael Saylor was one of these investors who previously held a “BTC-maximalist” position, now admitting being wrong.
If an altseason really happens, altcoin investors are expected to see far higher gains than Bitcoin holders in the following months. However, many altcoins lack solid fundamentals and can usually expose investors to higher risks; requiring caution while opening positions.
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