Altcoin
Altcoin Season on the Horizon? Here’s What the Analyst Thinks
Altcoin market cap (TOTAL3) is still 70% below its previous highs, while Bitcoin is near its all-time high (ATH). Market experts suggest that the stage is set for a major rally in altcoins, supported by positive developments such as the approval of the Spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) on July 4.
Additionally, new ETF applications for Solana VanEck and 21Shares are also positively influencing market sentiment, shifting interest from Bitcoin to altcoins.
Ethereum Performance vs Bitcoin
The month of June ended on a positive note, with Bitcoin price recovering to $63.7k from an initial dip of $58,560. Meanwhile, Ethereum (ETH) showed strong performance against Bitcoin (BTC).
According to market analysts, the last time ETH broke its resistance against BTC, it triggered a seven-month long altcoin season, from March 2021 to November 2021. Although there were fluctuations during that period, the overall increase in altcoin values was notable.
Market analysts suggest that Bitcoin may be entering a consolidation phase after its recent parabolic rise. This could set the stage for Ethereum and other altcoins to experience exponential growth.
Ethereum, as the leading altcoin, looks set to significantly outperform Bitcoin, especially with the possible launch of Ethereum ETFs by July 4th.
The Decline of Bitcoin Dominance
BTC (BTC.D) Dominance The monthly chart shows Bitcoin is testing its long-standing resistance line, which has held since March 2017. Historically, whenever BTC dominance hits this resistance and falls back, Ethereum and other altcoins have shown a substantial recovery.
A decline in BTC dominance indicates that altcoins are gaining value faster than Bitcoin, often signaling the start of an altcoin season.