After the recent strong bullish performance of several altcoins, many analysts have predicted that the altcoin season will begin, building momentum for a major price explosion in the coming weeks. Interestingly, popular analyst EGRAG Crypto weighed in on the discourse around the upcoming swing season, predicting a potential market inflow of $627 billion.
Bitcoin Dominance Will Collapse by 33% as Altcoins Take Flight – Analyst
in Share X on FridayEGRAG Crypto provided valuable information about the market growth potential of altcoins in the upcoming altcoin season. The analyst used Range Visual Volume Profiler (VRVP), an analysis tool for identifying key support and resistance levels based on trading volume, to study Bitcoin trading activity across different dominance levels.
For context, alt season is a period when altcoins significantly outperform Bitcoin in terms of price appreciation. It is characterized by a relative decline in Bitcoin’s market share as capital moves to other cryptocurrencies.
As shown in the weekly chart below, EGRAG Crypto indicates that Bitcoin dominance is closing below the Value High Zone (VAH) i.e. the upper limit of heavy trading activity which is currently acting as a resistance zone.
This development is particularly bullish for altcoins as it indicates increased selling pressure on Bitcoin which could weaken its dominance over other assets. Importantly, EGRAG Crypto also highlights the Value Low Area (VAL), i.e. the lower bound of heavy trading activity which will likely serve as a support level and target level for Bitcoin’s dominance in this swing season.
According to the values drawn by the analyst, Bitcoin dominance will decrease by 33.04% if it reaches the low value zone. Therefore, given Bitcoin’s current market cap of $1.91 trillion, altcoins are likely to record new inflows worth $627 billion in the coming weeks.
In addition, EGRAG Crypto also indicates that Bitcoin Dominance will have a Point of Control (POC) target of 42% in this swing season. The POC represents a pivotal price/control level with the largest trading volume and a decline below indicates a definite shift in market interest from Bitcoin to other cryptocurrencies.
Ethereum remains the key to charging Altseason
With more expert comments on altcoins, analyst Michael van de Poppe assesses the positive performance of altcoin prices in the past month. Moreover, the analyst Countries If Ethereum (ETH), the largest altcoin by market cap, closes above 0.035 on the November ETH/BTC chart, it will signal a strong bullish period for altcoins in December.
At the time of writing, the altcoin market remains worth $1.39 trillion, representing 41.4% of the total cryptocurrency market capitalization.