- Analysts believe that an altcoin sector rebound could be likely.
- BTC dominance and ETH/BTC ratio suggested a likely relief for the sector.
The altcoin season momentum slowed in December after a wild run in November which pumped Dogecoin [DOGE], Ripple [XRP], and Hedera Hashgraph [HBAR].
Now, the next leg of the altcoin season could be imminent based on historical Bitcoin [BTC] dominance trends.
Is the altcoin season closer?
According to crypto analyst TechDev 52, Bitcoin dominance (BTC.D) could drop in January, triggering the much-awaited altcoin season rebound. He said,
“History tells us the candle that starts tomorrow is for altcoins.”
Source: X
The chart, on a 6-month timeframe, showed that BTC Dominance (BTC.D) had hit long-term trendline resistance. A rejection at this level could lower BTC dominance, potentially allowing altcoins to recover strongly.
Additionally, the ETH/BTC ratio pointed to a likely bullish outcome for the altcoin sector. This ratio tracks ETH’s relative performance to BTC and is considered a barometer of the health of altcoins, given ETH’s status as the leading altcoin.
Blockchain analysis firm SwissBlock noted that the ETH/BTC ratio had bottomed as BTC.D struggled, suggesting that a rebound for the altcoin season was on the horizon.
In its Telegram broadcast, the firm said,
“Bitcoin’s dominance is losing steam, and ETH/BTC has printed a higher low, possibly signaling a bottom. Is it time for altcoins to shine, at least for a while?”
Source: SwissBlock
That said, some select altcoins performed well in the past week despite the overall market weakening. Virtual Protocol [VIRTUAL] gained nearly 30%, reaching $4 for the first time. Similarly, Gate Token [GT] and FTX Token [FTT] each rallied about 18%.
However, the broader altcoin sector remained flat, as indicated by the Altcoin Season Index, which was hovering around the neutral level. This suggests that alt-season momentum could either rebound or weaken further.
Source: Blockchain Center
That said, there are increasingly more ETH bulls than BTC, a trend that might bode well for the king altcoin and the broader sector.
