An analyst has identified two significant patterns in altcoin and Bitcoin-related charts that suggest a potential altcoin season may soon be on the horizon.
In two recent posts on X, analyst Ali Martinez highlighted signals indicative of this possibility. The first chart he shared pertains to the combined altcoin market cap, a metric that excludes Bitcoin and Ethereum. Over the past few years, this combined market cap has developed a pennant pattern, a common technical analysis indicator comprising a pole and a triangle or “pennant” signifying consolidation.
The graph reveals that the sharp uptrend observed between Q4 2023 and Q1 2024 constitutes the pole of this pattern, while the downtrend observed since then forms the pennant section. This specific formation is known as a bull pennant. Recently, the altcoin market cap has been testing the upper channel of this pennant. If it successfully breaks through this resistance, a significant rally could ensue.
Martinez suggests that a pennant breakout could potentially mirror the length of the pole, propelling the altcoin market cap to surpass the $1 trillion mark. The analyst remains optimistic, expressing confidence that “it is just a matter of time before #altcoinseason!”
The second chart that could be pointing toward an upcoming altcoin season examines Bitcoin’s market cap dominance. This metric reflects the percentage of the total cryptocurrency market capitalization that Bitcoin holds. Martinez shared a graph illustrating that Bitcoin’s market cap dominance has been moving in a rising wedge pattern—a bearish technical analysis formation.
In a rising wedge, the asset’s price ascends between converging trendlines, with the movement becoming more confined as it approaches the apex. The graph indicates that Bitcoin’s dominance, currently at 57%, is nearing the end of this rising wedge pattern, hinting at a possible break below the lower channel soon. Such a dip could bring Bitcoin’s market cap dominance down to about 47%, potentially paving the way for an altcoin season.
Meanwhile, Bitcoin itself has shown some stabilization recently, hovering around the $63,500 mark after a period of significant price increases. This steadying in Bitcoin’s price could further bolster the chances of an altcoin rally, should the patterns observed by Martinez materialize as predicted.
These analyses, rooted in technical patterns, bring a sense of anticipation to the cryptocurrency market, hinting at the potential for dynamic shifts in market composition and value growth that could favor altcoins in the near future.
