Crypto Trader Predicts Nearing Alt Season as Bitcoin Dominance Weakens

An alt season (altcoin season) is something that virtually all crypto traders look forward to. It is a time where all cryptocurrencies other than bitcoin exponentially grow in value. From large caps to small caps, these digital coins can rise anywhere by 2x to 100x. If you’re finding the previous statement difficult to believe, that’s likely because you were not around the last time these crypto tokens pumped.

A crypto trader who goes by the name Paddy stash on Twitter has a reason for that. In a series of tweets, the analyst revealed why there hasn’t been an alt season in nearly two years and why we’re due for one soon.

Total Altcoin Market Cap Following the Same Pattern for Over Half a Decade

One of the tenets of technical analysis is that history tends to repeat itself. What happened in the past is very likely to happen again. We’re seeing this principle play out in the chart of the total altcoin market cap thanks to Paddy Stash.

According to the trader, the total market cap has been trading perfectly within an ascending channel. Since 2014, the altcoin index has bounced every single time it touched the diagonal support of the channel. It has also plunged every time it tapped the diagonal resistance of the channel. In a span of six years, the index has respected both the support and resistance levels of the ascending channel five times.

The trader emphasized that the total altcoin market cap is touching the diagonal support of the ascending channel. He feels confident that an alt season will happen soon because the index has followed the pattern five out of five times.

Weakening Bitcoin Dominance

Paddy stash validates his argument by illustrating how the bitcoin dominance index is showing signs of weakness. For those who are not aware, the index computes the market capitalization of bitcoin against the market cap of all cryptocurrencies. According to the analyst, the bitcoin dominance index getting rebuffed at 69 percent is an indication that the total altcoin market cap will be skyrocketing soon.

As of this writing, the bitcoin dominance index has dropped to 65.73 percent as bitcoin struggles to trade above $10,000 levels. A look at the index also shows bullish exhaustion. It is overbought in both the weekly and daily RSI. On top of that, the index is flashing a bearish divergence on the daily RSI to indicate weakening bullish momentum.

Bitcoin Dominance

Overall, a Glorious Alt Season Is Upon Us

As the bitcoin dominance index shows weakness while the total altcoin market cap touches the diagonal support of its ascending channel, we now have a confluence of events where altcoins are due for a massive rally. That’s according to Paddy stash.

In another tweet, he shared a chart of the total altcoin market cap to show the two-year consolidation of altcoins.

Bottom Line

Trader Paddy stash is offering a convincing argument of how crypto tokens other than bitcoin are almost ready for blastoff. It is hard to deny that a bounce for altcoins is on the horizon considering that the diagonal support of the horizon has been respected multiple times. On top of that, bitcoin is starting to lose steam. It is very possible that people will transfer capital into other cryptocurrencies to protect their profits and overall crypto exposure.

Disclaimer: This article is intended for informational purposes only and should not be taken as investment advice.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Millions in Cryptocurrency Stolen by Scammers in the Last Month According to Tenable Research
November 24, 2021
Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021

Blockchain/Cryptocurrency Questions and Answers

Crypto casinos
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
The Unconventional Guide to Ethereum
October 28, 2021
ICo Presale
The Science Behind ICO Presales…
October 14, 2021

CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin50,499 0.54 % 0.27 % 11.42 %
Ethereum4,317.8 0.70 % 0.76 % 6.89 %
Binance Coin573.90 0.99 % 2.59 % 8.04 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Solana190.11 0.85 % 2.61 % 8.91 %
Cardano1.370 0.41 % 4.94 % 11.66 %
USD Coin1.000 0.14 % 0.20 % 0.17 %
XRP0.8143 0.40 % 1.92 % 18.38 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Terra69.76 1.12 % 5.05 % 17.99 %

Bitcoin (BTC) $ 50,744.00
Ethereum (ETH) $ 4,334.82
Binance Coin (BNB) $ 578.68
Tether (USDT) $ 1.00
Solana (SOL) $ 192.07
Cardano (ADA) $ 1.38
USD Coin (USDC) $ 1.00
XRP (XRP) $ 0.819499
Polkadot (DOT) $ 30.21
Terra (LUNA) $ 70.44