Cryptocurrency analyst Miles Deutscher has pointed to a promising technical setup in the total altcoin market capitalization, leading to speculation that the altcoin season may be coming to an end. Deutscher’s comments come as the broader Cryptocurrency market is witnessing a strong rally, with Bitcoin (BTC) temporarily surpassing $93,000 and several other altcoins showing impressive gains.
So how soon can altcoin season come? This analysis explores other factors that could trigger or delay the expected price increase.
Altcoin Season Awaits, Analyst Says
To understand better, TOTAL3 is the total market capitalization of the top 125 Cryptocurrencies, excluding BTC and Ethereum (ETH). History shows that when this index rises, it can signal that altcoin season is approaching, as long as Bitcoin’s dominance declines.
Deutscher’s post on X (formerly Twitter) showed the monthly chart of TOTAL3, indicating that it has formed strong support. The article also revealed that the recent price increase in altcoins has taken the market capitalization above significant resistance.
“Monthly chart of TOTAL3 (altcoin index). The setup looks really great, to be honest.” Deutscher write on X.
While the analyst’s view may be reasonable, one obstacle that could hinder the altcoin season cycle is Bitcoin Dominance. Bitcoin dominance refers to the ratio of BTC’s market capitalization to the total market capitalization of the entire Cryptocurrency market.
At the time of writing, BTC.D, as it is commonly known, is at 61.33%. This indicates that the number one Cryptocurrency still retains a strong control over the market. For alt season to begin, the ratio must drop, which Deutscher admitted on November 12.
“Bitcoin dominance continues to increase. Only a breakdown of BTC dominance could trigger a true altcoin season.” Analyst emphasize.
Altcoin Growth May Be Delayed Until BTC Falls
Currently, Blockchaincenter’s altcoin season index, which measures whether the market is in an alt season, has dropped one unit to 29. About a week ago, the index was 30. To confirm, at least 75% of the top 50 Cryptocurrencies ranking should outperform BTC.
Despite this increase, the index remains below the 75 threshold, with only 16 of the top Cryptocurrencies surpassing Bitcoin in the past 90 days.
If that holds, Bitcoin price could rise to a higher value before most altcoins reach new peaks. However, if BTC experiences a double-digit correction, this could pave the way for altcoins to grow. If that happens, then alt season could officially begin.