Altcoin season can start in November, here’s why?

Bitcoin (BTC) is up 65% in 21 days, hitting a new all-time high of $ 67,000. It then consolidated around $ 60,000 over the past 2 weeks. Such a price action of the benchmark cryptocurrency offers ideal conditions for the start of the altcoin season.

In this article, Bitcoin Magazine examines several theories about an altcoin season. Altcoins’ total capitalization surpasses an all-time high and a fractal shows that it has a similar structure to the 2017-2018 bull market. In addition, Bitcoin’s dominance is declining and many of the top altcoins are breaking past several months of consolidation or hitting new ATHs.

The entire altcoin market capitalization threatens to explode

The total altcoin market cap (TOTAL2) is well on its way to surpassing the all-time high of $ 1.49 trillion on May 12, 2021 (yellow line). The second time it nearly hit that level on September 7th, TOTAL2 respected the rising support line (in blue) created from the $ 608 billion low on July 20th.

Buy altcoin

TOTAL2 daily chart | Source: TradingView

Analyst @Parabolic_Matt has shown on Twitter that the weekly timeframe technical indicators are also bullish. In his opinion, TOTAL2 has created an ascending triangle. It also looks like a mug with a target of $ 2.63 trillion, which is a 58% increase from the current price.

Buy altcoin

Weekly TOTAL2 chart | Source: TradingView

Additionally, the weekly RSI has just crossed the long-term descending trendline (red circle) that has been in place since February 15, 2021. Matt added:

“Altcoin’s market capitalization looks like it’s going to explode! (…) November could be the start of the altcoin season. “

Another argument for the altcoin season came from analyst @ TechDev_52. Over a two-week period, he created a fractal comparing total altcoin market cap from 2017-2018 and now.

According to him, the two time periods share similarities in the 2-week RSI as the indicator follows a 3-level bull market pattern. The first two peaks (red and blue) were reached at the beginning of the year, while the last (yellow) is ahead and is expected to be reached in early 2022. According to the analyst, this could put TOTAL2 in the range of around 5. $ 7 trillion.

Buy altcoin

The source: Twitter

Bitcoin dominance rate

Another way to look for signals for the altcoin season is to look at the Bitcoin Dominance Rate Chart (BTC.D).

BTC.D was up 20% between September 10th and October 19th. However, it has been declining since then.

Buy altcoin

BTC.D daily chart | Source: TradingView

In addition, BTC.D could not form a higher top than the 49% achieved on July 30, 2021 (red circle). This is a bearish signal indicating a continued decline in Bitcoin dominance. Long-term support is found at 39.5% and 35.5%.

Additional analysis of the correlation of BTC.D and Bitcoin price was provided by analyst Kevin Svenson comment recently. He highlighted three times when BTC.D began to decline in 2021. Each of them correlated with BTC price consolidation after a strong rally.

The following graphic shows the time of the BTC price increase (green arrow) and the subsequent consolidation (red circle). This iteration began on January 14th, March 31st, and August 10th. Even if we look at the BTC.D chart below, we can see that these moments triggered the uptrend, its sharp decline (red arrow).

Buy altcoin

BTC / USD and BTC.D daily chart | Source: TradingView

The current market conditions are reminiscent of all previous periods. Bitcoin has completed a bull run, setting a new ATH at $ 67,000, and is currently consolidating. In contrast, Bitcoin’s dominance has started to decline. If this continues, an altcoin season will come.

TOP altcoins show strength

The final argument for an altcoin season is the chart of the TOP altcoins. Many of them have just broken out of a long-term consolidation pattern and have confirmed previous resistance as support. On the flip side, some altcoins have broken out of their ATH levels to enter the pricing phase.

The main determinant of the health of the altcoin market is Ethereum (ETH). UK two just topped the previous ATH at $ 4,384 (yellow line) and is currently in a pricing phase.

Buy altcoin

ETH / USD daily chart | Source: TradingView

We see a similar situation on the charts of Polkadot (DOT) or Solana (SOL). In the meantime, the top 20 cryptocurrencies such as Binance Coin (BNB), Polygon (MATIC) or Chainlink (LINK) have broken out through long-term consolidation patterns.

For example, LINK broke the USD 29-30 resistance area and the long-term descending resistance line (in blue). Once these levels are confirmed as support, the altcoin is ready to resume its uptrend and could soon break the critical resistance area at $ 35, and if this is successful, LINK will not face much resistance.

Buy altcoin

LINK / USD daily chart | Source: TradingView

You can see the coin prices here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Beincrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

Altcoin season can start in November, here’s why?

Bitcoin (BTC) is up 65% in 21 days, hitting a new all-time high of $ 67,000. It then consolidated around $ 60,000 over the past 2 weeks. Such a price action of the benchmark cryptocurrency offers ideal conditions for the start of the altcoin season.

In this article, Bitcoin Magazine examines several theories about an altcoin season. Altcoins’ total capitalization surpasses an all-time high and a fractal shows that it has a similar structure to the 2017-2018 bull market. In addition, Bitcoin’s dominance is declining and many of the top altcoins are breaking past several months of consolidation or hitting new ATHs.

The entire altcoin market capitalization threatens to explode

The total altcoin market cap (TOTAL2) is well on its way to surpassing the all-time high of $ 1.49 trillion on May 12, 2021 (yellow line). The second time it nearly hit that level on September 7th, TOTAL2 respected the rising support line (in blue) created from the $ 608 billion low on July 20th.

Buy altcoin

TOTAL2 daily chart | Source: TradingView

Analyst @Parabolic_Matt has shown on Twitter that the weekly timeframe technical indicators are also bullish. In his opinion, TOTAL2 has created an ascending triangle. It also looks like a mug with a target of $ 2.63 trillion, which is a 58% increase from the current price.

Buy altcoin

Weekly TOTAL2 chart | Source: TradingView

Additionally, the weekly RSI has just crossed the long-term descending trendline (red circle) that has been in place since February 15, 2021. Matt added:

“Altcoin’s market capitalization looks like it’s going to explode! (…) November could be the start of the altcoin season. “

Another argument for the altcoin season came from analyst @ TechDev_52. Over a two-week period, he created a fractal comparing total altcoin market cap from 2017-2018 and now.

According to him, the two time periods share similarities in the 2-week RSI as the indicator follows a 3-level bull market pattern. The first two peaks (red and blue) were reached at the beginning of the year, while the last (yellow) is ahead and is expected to be reached in early 2022. According to the analyst, this could put TOTAL2 in the range of around 5. $ 7 trillion.

Buy altcoin

The source: Twitter

Bitcoin dominance rate

Another way to look for signals for the altcoin season is to look at the Bitcoin Dominance Rate Chart (BTC.D).

BTC.D was up 20% between September 10th and October 19th. However, it has been declining since then.

Buy altcoin

BTC.D daily chart | Source: TradingView

In addition, BTC.D could not form a higher top than the 49% achieved on July 30, 2021 (red circle). This is a bearish signal indicating a continued decline in Bitcoin dominance. Long-term support is found at 39.5% and 35.5%.

Additional analysis of the correlation of BTC.D and Bitcoin price was provided by analyst Kevin Svenson comment recently. He highlighted three times when BTC.D began to decline in 2021. Each of them correlated with BTC price consolidation after a strong rally.

The following graphic shows the time of the BTC price increase (green arrow) and the subsequent consolidation (red circle). This iteration began on January 14th, March 31st, and August 10th. Even if we look at the BTC.D chart below, we can see that these moments triggered the uptrend, its sharp decline (red arrow).

Buy altcoin

BTC / USD and BTC.D daily chart | Source: TradingView

The current market conditions are reminiscent of all previous periods. Bitcoin has completed a bull run, setting a new ATH at $ 67,000, and is currently consolidating. In contrast, Bitcoin’s dominance has started to decline. If this continues, an altcoin season will come.

TOP altcoins show strength

The final argument for an altcoin season is the chart of the TOP altcoins. Many of them have just broken out of a long-term consolidation pattern and have confirmed previous resistance as support. On the flip side, some altcoins have broken out of their ATH levels to enter the pricing phase.

The main determinant of the health of the altcoin market is Ethereum (ETH). UK two just topped the previous ATH at $ 4,384 (yellow line) and is currently in a pricing phase.

Buy altcoin

ETH / USD daily chart | Source: TradingView

We see a similar situation on the charts of Polkadot (DOT) or Solana (SOL). In the meantime, the top 20 cryptocurrencies such as Binance Coin (BNB), Polygon (MATIC) or Chainlink (LINK) have broken out through long-term consolidation patterns.

For example, LINK broke the USD 29-30 resistance area and the long-term descending resistance line (in blue). Once these levels are confirmed as support, the altcoin is ready to resume its uptrend and could soon break the critical resistance area at $ 35, and if this is successful, LINK will not face much resistance.

Buy altcoin

LINK / USD daily chart | Source: TradingView

You can see the coin prices here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Beincrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

Visited 1 times, 1 visit(s) today

Leave a Reply