Is November a Big Month for Altcoins? Bitcoin (BTC) has risen by 65 percent in just 21 days. Reaching a new all-time high (ATH) of $67,000 in the process. Following that, it has been consolidating around $60,000 over the past two weeks. Such price movement in the world’s largest cryptocurrency might create potentially excellent conditions. For the start of the altcoin season.
Taking a look at certain technical arguments in support of the concept of an approaching altcoin season. BeInCrypto publishes this essay. The total value of all cryptocurrencies is November breaking through the all-time high. And its fractal shape conforms to the equivalent structure seen during the bull market of 2017-2018. Bitcoin’s dominance is eroding, and many major cryptocurrencies are breaking out. Of multi-month consolidations or just breaking through their all-time highs.
An explosive Altcoin cap
The entire altcoin market capitalization (TOTAL2) chart is on the cusp of surpassing its all-time high of $1.49 trillion. Which was reached on May 12, 2021. (yellow line). On the 7th of September, this level was almost attained for the second time. Furthermore, the chart appears to be following the rising support line (blue). In which has been in place since the market reached a low of $608 billion on July 20.
The cryptocurrency trader @Parabolic Matt noted out on Twitter that technical indicators on the weekly time frame. Are also positive, which he believes is significant. The chart, in his perspective, has generated an ascending triangular configuration in the sky. Additionally, it has the appearance of a cup and handle pattern with a technical aim of $2.63 trillion. This is a 58 percent increase in value when compared to today’s altcoin market worth.
Furthermore, the weekly RSI has recently broken through the declining long-term trendline (red circle). Which has been in place since February 15, 2021. This is also a positive indication, which indicates that a strong cryptocurrency season. May be on the horizon in the following weeks.
One further reason in support of altcoin season is November comes from another crypto market expert. @TechDev 52, who makes his case on Twitter. He compared the fractal of total market capitalization from the turn of the year 2017-2018. To the present day in a two-week time frame.
According to him, the structures are identical, which is supported by the RSI over a period of two weeks. Thus according to him, the relative strength index (RSI) of altcoin capitalization is following a three-step bull market pattern.
Will Bitcoin’s dominance decline?
Another way to find evidence for an altcoin season is to look at the Bitcoin dominance chart (BTCD). Between September 10 and October 19, BTCD rises 20%. Since then, Bitcoin’s dominance has waned.
BTCD also failed to form a higher high beyond the 49% level attained on July 30, 2021. (red circles). This is a bearish indication that may imply a continuation of Bitcoin’s decrease in dominance from early 2021. Long-term support is identified at 39.5% and 35.5%.
Crypto market analyst Kevin Svenson has posted an analysis of BTCD and the Bitcoin price on YouTube. He cited three points in 2021 when BTCD began to fall. Each time they linked with a price consolidation after a wild spike.
Here’s a chart of BTC price increases (green arrows) and subsequent consolidations (red circles). This cycle began on January 14, March 31, and August 10. BTCD’s bottom chart shows that these moments triggered a severe fall (red arrows).
The current market situation is reminiscent of past times. Bitcoin has reached a fresh ATH of $67,000 and is now consolidating. However, Bitcoin’s influence is waning. If it continues, there will be an altcoin season.