The majority of altcoins have been increasing throughout 2019. However, after many reached their yearly highs around June, they have since been on a downward trend. Furthermore, their rate of increase has been considerably slower than that of Bitcoin, causing the latter’s dominance rate to increase.
Bitcoin’s market dominance has been above 50% for most of its history and it currently stands at 69%. This has caused many to call for an increase in the price of altcoins, thereby initiating another ‘altseason.’
There are several similarities between the relationship of the Bitcoin price and altcoin dominance during the previous altseason and the current movement. This makes us believe that another altseason might soon begin.
Crypto trader @cryptowolf also made the suggestion in a tweet from earlier.
Are you ready for altseason ? pic.twitter.com/EtZYP759gH
— CryptoWolf (@IamCryptoWolf) November 7, 2019
The prediction comes from the relationship of the Bitcoin price and altcoin dominance. More specifically, two areas are outlined, which he believes indicate similar points in the cycle.
Let’s analyze both of them closely.
The periods with the most similarities are Aug-Oct 2015, and Apr-July 2019. During both periods, the Bitcoin price made a rapid increase, combined with a simultaneous capitulation in the altcoin price.
Afterward, the BTC price traded in a range, while altcoins began their rapid increase.
Elsewhere, we have the fact that both lows are occurring inside a significant support area, and the RSI has been oversold both times. Additionally, these are the only two times in which the RSI has been oversold.
Combining this with the similarity in the BTC price movement further points to another altseason possibly just around the corner.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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