Strong signals indicate the cryptocurrency market is currently experiencing an altcoin season, characterized by declining Bitcoin dominance and patterns mirroring previous bull cycles like 2017 and 2021.
This phase shift is confirmed through historical cycle analysis and current market data. Bitcoin’s market dominance, a key indicator, has been observed declining.
Analysis, including charts from analyst Merlijn and the TOTAL2 market capitalization metric which tracks assets excluding Bitcoin, reveals distinct phases: initial periods of Bitcoin-led growth followed by significant surges in altcoin value.
The broader market cycles from 2015 to the present illustrate a recurring pattern, starting with Bitcoin strength and leading to a rotation into altcoins as investors seek higher returns.
Currently, altcoins are exhibiting robust recovery signs following the 2022 bear market. Technical data supports the potential for altcoins to outperform Bitcoin in this phase.
The alignment of current market trends with historical patterns observed in 2017 and 2021 further reinforces the interpretation that an altcoin season is unfolding now.