Altcoin Season To Begin: Analysts Predict Perfect Buying Zone as Bitcoin Dominance Peaks

After trading in red for the past few weeks, the crypto market is showing signs of a big opportunity for altcoin investors. With the altcoin market cap already plunged from a January high of $1.64 trillion to $931 billion, top analyst Darkfost believes that it is the perfect moment to buy altcoin as we've officially entered a "buying zone."

On top of that, Bitcoin dominance is on the brink of a major collapse, hinting that altseason could be just around the corner!

Time To Buy Altcoins?

According to analyst Darkfost, current altcoin trading volumes have entered a key accumulation phase, making this an ideal time to begin buying altcoins using dollar-cost averaging (DCA).

Looking at the Darkfost shared chart, it shows a crucial trend in altcoin trading volumes. As it compares the 30-day trading volume for stablecoin pairs with the yearly average. When the 30-day volume drops below the yearly average, it has often been a good time to buy.

Right now, that signal has appeared again, suggesting that the market is in a buying phase. The last time this happened was in September 2023, just before altcoin prices started rising. 

Will Bitcoin Dominance Fall?

Bitcoin’s dominance (BTCD) plays a crucial role in determining whether the altcoin season is about to begin. Since hitting a cycle low in January, BTC dominance has been steadily rising and currently stands at 63.50%.

According to crypto analyst Mister Crypto, Bitcoin dominance has reached a key resistance level while following a rising wedge pattern. This pattern is often seen as a bearish signal, meaning a strong pullback could be coming soon.

Mister Crypto’s chart highlights a situation similar to 2021, when Bitcoin dominance dropped sharply. Back then, this decline led to a massive altcoin rally. If history repeats itself, Bitcoin dominance could see a significant drop, possibly by 30x.

Altcoin Season Index Hints Different Story 

However altcoin season index has dropped to a low of 18, signaling that altcoins are currently underperforming compared to Bitcoin. 

This index tracks the performance of the top 50 altcoins and compares their gains against Bitcoin. A low score means Bitcoin is dominating the market, while altcoins are struggling to keep up.