Analysts are observing structural similarities in the altcoin market that echo the setup before the 2021 altcoin season. Key indicators, such as the altcoin to Bitcoin market cap ratio, suggest a potential repeat of past cycles. This ratio, which measures altcoin strength relative to Bitcoin dominance, has stabilized after a prolonged downtrend, with a monthly golden cross signaling a possible trend transition.
Bitcoin dominance is also under scrutiny, as it tests a long-term descending resistance line reminiscent of the 2021 altcoin season. Analysts note that a break below 45% dominance could trigger significant altcoin rallies, similar to past cycles. Meanwhile, the total altcoin market cap shows signs of long-term accumulation, with higher lows since 2022, indicating a potential for gradual growth. Despite these structural signals, sentiment indicators remain muted, suggesting the market has yet to fully price in a potential altcoin rotation.
Analysts See Structural Parallels to 2021 Altcoin Season
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