Altseason is Approaching as Bitcoin Holds at $90K and Analysts Detect Breakthrough Signals

The cryptocurrency market is witnessing anticipation as several technical indicators suggest that an altcoin season may be approaching. With Bitcoin's recent performance stabilizing above $90,000, market followers are shifting their focus to the potential of altcoins surpassing BTC in the coming weeks. According to the analysis of Merlijn The Trader, he highlighted a classic altseason signal, stating that every major altseason begins with a breakout structure and a heating RSI. He specifically pointed out the TOTAL2 chart, which follows the total market capitalization excluding Bitcoin, as evidence that momentum is forming. In a subsequent analysis, Merlijn emphasizes the patterns in the Bitcoin dominance chart ($BTC.D) and shares what he calls "a perfect descending triangle." This technical pattern often signals a bearish sentiment towards the asset being followed. In this case, it is Bitcoin's market share compared to other cryptocurrencies.

On the other hand, analyst Daniel Ramsay shares this view. He claims that Dominance has reached a key resistance zone and will soon witness a rejection, followed by a decline to the support zone. The current market setup evokes comparisons to the bull run of 2021, when altcoins saw historic gains. Justin Wu noted the similarities while highlighting key differences. Another market observer, BitElite, has provided a specific timeline associated with macroeconomic factors. This analyst claims that the altcoin season could begin in the second week of May. "That is when the Fed's meeting discusses interest rate cuts." This analyst has identified three key factors necessary for an altcoin season, which are interest rate cuts, an increase in M2Money supply, and finally, a slowdown or halt in QT. Bitcoin Halving Creates Conditions for the Growth of Altcoin Looking at the market sentiment chart from Crypto Rover, the current phase seems to fit the transition from "Awareness Phase" to "Excitement Phase" in the classic market cycle. The chart indicates that the market may be approaching the "Media Attention" and "Enthusiasm" phases, which typically occur before more euphoric stages like "Greed" and "Delusion".

What makes the current setup particularly interesting is how it aligns with the four-year Bitcoin halving cycle theory. With the most recent halving event taking place in April 2024, historical patterns suggest that we are entering a phase where altcoins typically start to perform better than Bitcoin as new capital flows into the market and investors seek higher-risk, higher-reward opportunities.