Is Altcoin Season Around the Corner? Analysts assess market trends

Altcoins have outperformed large-cap crypto assets over the past few days as markets show more signs of recovery.

This has prompted analysts and industry observers to call for a new season. However, they can be a bit premature as older children tend to arrive first.

When Altseason?

On August 26, technical analyst ‘Rekt Capital’ noted that there were several “bullish divergences” in altcoins. He added that they also “facilitated the development of early-stage market structures” and potential future breakout patterns.” A bullish divergence is a technical chart pattern that indicates a potential price reversal.

Meanwhile, on August 25, trader and analyst ‘Mags’ declared that another season was on the way after several months of bearish and sideways action. Similar “chopsolidation” has preceded altcoin breakouts in previous market cycles.

#Altcoins incoming season 👀 pic.twitter.com/mDdYS6Ccai

— Wizards (@thescalpingpro) August 25, 2024

‘Ash Crypto’ told his 1.1 million X followers that there were several phases to another season.

He noted that the first phase begins before the halving when altcoins start rallying just before Bitcoin halving. The second phase is a pause and pullback, which is what we’ve seen since the middle and where things are currently.

After these two there is a parabolic stage, where there are big gains in a short period of time. The analyst predicted that the other season will start at the end of this year.

“We can’t exactly pinpoint the exact date. But based on previous data, we can guess between November and December 2024.”

ALTSEASON UPDATE 2.0

Many of you ask me
yes when will be the next ALTSEASON.

Well here is my answer…

ALTSEASON moves in PHASES.

PHASE 1:
This phase starts before the half.
This is where ALTCOINS started
rally just before the HALVING event.

PHASE 2:… pic.twitter.com/ZihWbhyKhw

— Ash Crypto (@Ashcryptoreal) August 24, 2024

Several altcoins have outperformed Bitcoin’s growth over the past seven days, posting double-digit gains. These include Solana (SOL, 12.3%), Tron (TRX, 23%), Cardano (ADA, 15%), Avalanche (AVAX, 30%), and Chainlink (LINK, 21%).

Additionally, AI-based assets have also been on fire, with even bigger gains. Some of the top AI performers over the past week include Near Protocol (NEAR, 26%), Artificial Superintelligence Alliance (FET, 65%), Bittensor (TAO, 25%) and Render (RENDER, 43%).

The big move for AI stocks comes as markets anticipate tech and AI giant Nvidia’s second quarterly earnings report, due on Wednesday.

Resistance to Bitcoin dominance

Additionally, Bitcoin’s market dominance was recently rejected from a major resistance level, which could mean an altcoin rally is imminent.

BTC’s dominance is currently 57.43%, according to Tradingview, and has been trending higher since November 2022. However, it hit resistance earlier this month and is approaching similar levels again .

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