When ‘alt season?’ Now, says analyst as Bitcoin dominance hits 6-month low

Bitcoin (BTC) now accounts for lower than 60% of the full cryptocurrency market capitalization, heralding the arrival of “alt season 2.0.”

In a tweet on March 29, analyst Filbfilb, co-founder of buying and selling suite Decentrader, announced that situations had been lastly proper for a contemporary altcoin surge as their complete market capitalization is hitting new highs of practically $750 billion.

Altcoin market capitalization. Source: CoinMarketCap

Bitcoin dominance at its lowest since October 2020

Highlighting the present BTC/USD spot value, the mixed altcoin market cap in U.S. {dollars} and Bitcoin’s market cap dominance, Filbfilb summarized the market in what shall be music to the ears of altcoin merchants all over the place.

“Alt szn,” he commented, conjuring a typical nickname for the phenomenon of altcoins rising when Bitcoin cools or consolidates after a value surge of its personal.

“Alt season” has been a full three years within the making. As Cointelegraph reported, expectations of a broad altcoin resurgence have long been high but ultimately left unfulfilled.  

Now, however, with Bitcoin consolidating after hitting all-time highs of $61,700, circumstances appear to have played into traders’ hands.

At the time of writing, Bitcoin’s market cap dominance was 59.4%, its lowest since late October 2020.

Cryptocurrency market cap dominance chart. Source: CoinMarketCap

The latest catalyst is arguably Visa, which on Monday announced that it would support stablecoin USD Coin (USDC) for settlement, thus leveraging the Ethereum blockchain. ETH/USD noticed a modest 4.8% uptick in response, with the market cap share of Ether (ETH), the biggest altcoin, nonetheless in decline versus January.

Zooming out, the foundations are nonetheless being laid for what Cointelegraph analyst Michaël van de Poppe expects shall be a “very bullish” summer for altcoins, notably as the market capitalization has been breaking new highs, nearing $750 billion.

“Ethereum goes to shock everybody massively,” he wrote in regards to the Visa resolution.

Previous value forecasts for ETH/USD have included $5,000 and even $10,000 as a mid-term estimate.

Altcoins look nice,” fellow analyst Scott Melker added.

“Bottom in” for BTC?

For Bitcoin, in the meantime, indicators of a bullish comeback remained muted Monday after markets hit the buffers at February’s all-time highs of $58,300.

Intraday exercise was nonetheless sturdy, with the pair up by over 4% previously 24 hours.

Among market contributors, speak thus turned as to if final week’s bounce off $50,000 represented a definitive value ground within the ongoing consolidation interval.

“It might very effectively be that the BTC backside is in,” standard Twitter account Rekt Capital estimated on Monday.

“If that is certainly the case, then which means that $BTC bottomed after a two-week retrace for the second time this yr. Average Bitcoin retrace in 2017 was ~16 days.”

BTC/USD retracement chart. Source: Rekt Capital/Twitter

As of publication time, BTC/USD circled $58,000, exhibiting resilience in what’s the begin of its last resistance block earlier than coming into uncharted value territory as soon as once more.