Bitcoin (BTC) market dominance has reached a peak of 56%. Against this backdrop, analysts have begun to predict the possible approach of the altcoin season.
Bitcoin dominance is critical to understanding what is happening in the market as a whole and which cryptocurrencies may be promising in the near future. If BTC holds its price and its share falls, this may signal the beginning of the altcoin season. If the asset falls along with its share, it means that the entire digital asset sector is going through hard times.
What factors foretell the imminent altcoin season
According to Marcus Thielen of 10X Research, the price of Bitcoin usually stabilizes in August. A stable BTC price combined with falling dominance could create the perfect conditions for an altcoin boom.
The beginning of the altcoin season is also mentioned by the founder of the analytical platform CryptoQuant, Ki Young Yu. The expert emphasizes the increase in the activity of crypto whales, who seem to be preparing for a cryptocurrency rally.
Yu explained that limit orders are usually chosen by whales and institutions. Large purchases or sales can greatly affect the current price of an asset. Limit orders allow institutional investors to make trades more smoothly, gradually buying or selling the required amount of an asset. These limit orders create what is called “quote volume.”
According to the normalized difference in cumulative buy/sell volume chart, there is currently significant volume of quotes for altcoins such as Solana (SOL), Cosmos (ATOM), and Polygon (MATIC), meaning that institutions are actively buying them.
The crypto community is in a positive mood. Many experts, including Crypto Vikings, expect altcoin prices to rise. This is due to recent positive developments in the industry and the overall improvement in market conditions.
Investors are now becoming increasingly confident, with many believing that the general disappointment after a long downturn is creating the ground for profitable investments.
A well-known crypto trader in the community, Mags, on X (formerly Twitter) noted that after a 525-day accumulation period, altcoins have grown by 58%. In his opinion, this growth will continue.
However, some believe that due to the recent price decline, there is no enthusiasm for the altcoin season among market participants. This is the opinion of, for example, lead analyst at Santiment Brian Quinlivan.
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Source: Cryptocurrency
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