Will November Bring a Massive Altcoin Season?

Will November Bring a Massive Altcoin Season?

Bitcoin (BTC) is up 65% in 21 days and has set a new all-time excessive (ATH) of $67,000. After that, it has been consolidating round $60,000 for the final 2 weeks. Such value motion of the biggest cryptocurrency offers doubtlessly excellent circumstances to provoke altcoin season.

In this text, BeInCrypto takes a have a look at some technical arguments for the speculation of an upcoming altcoin season. The complete altcoin capitalization is breaking by means of the all-time excessive, and its fractal corresponds to the analogous construction from the 2017-2018 bull market. Additionally, Bitcoin’s dominance is dropping, and lots of prime altcoins are breaking out of their multi-month consolidation or simply breaking by means of their all-time highs.

Altcoin cap able to explode

The chart of complete altcoin market capitalization (TOTAL2) is on the verge of its all-time excessive of $1.49 trillion, set on 12 May 2021 (yellow line). The second time this stage was virtually reached was on 7 September. Moreover, the chart appears to respect the rising help line (blue), which has been in place because the backside at $608 billion on 20 July.

TOTAL2 chart by Tradingview

Cryptocurrency dealer @Parabolic_Matt identified on Twitter that technical indicators on the weekly timeframe additionally look bullish. In his opinion, the chart has created an ascending triangle formation. It additionally resembles a cup-and-handle sample with a technical goal at $2.63 trillion. Measured from at the moment’s altcoin market valuation, this could be a 58% rise.

TOTAL2 chart by Tradingview

In addition, the weekly RSI has simply damaged out above the descending long-term trendline (crimson circle), which was in place since February 15, 2021. This can also be a bullish sign that provides a probability for a robust altcoin season within the coming weeks. @Parabolic_Matt concludes:

“The ALT Coin market cap seems prefer it’s about to EXPLODE! (…) November could deliver #ALTSEASON.”

Another argument in favor of altcoin season is supplied on Twitter by one other crypto market analyst @TechDev_52. In a 2-week timeframe, he in contrast the fractal of complete market capitalization from the flip of 2017-2018 and at the moment.

In his opinion, the buildings present similarities, that are confirmed by the 2-week RSI. In his opinion, the RSI of altcoin capitalization is following a 3-step bull market sample. The first two peaks (crimson and blue) had been reached earlier this 12 months, whereas the final one (yellow) is forward and is anticipated to occur in early 2022. According to the analyst, this might take TOTAL2 to values within the $5-7 trillion vary.

Source: Twitter

Will Bitcoin’s dominance decline?

Another option to search for arguments for a potential altcoin season is to take a look at the chart of Bitcoin dominance (BTCD). We see a 20% enhance in BTCD between September 10 and October 19. However, Bitcoin’s dominance has been declining since then.

BTCD chart by Tradingview

Moreover, BTCD didn’t kind a greater excessive relative to the 49% stage reached on July 30, 2021 (crimson circles). This is a bearish sign that will point out a continuation of the decline in Bitcoin’s dominance, which has continued because the starting of 2021. Long-term help is discovered on the 39.5% and 35.5% ranges.

Additional evaluation of BTCD in relation to the Bitcoin value was lately done on YouTube by crypto market commentator Kevin Svenson. He highlighted 3 moments in 2021 that initiated a decline in BTCD. Each time they had been correlated with a consolidation of the BTC value after a violent surge.

In the chart beneath, we see the BTC value spikes (inexperienced arrows) and the following consolidation (crimson circles). The starting of this repetitive course of occurred on 14 January, 31 March and 10 August. At the identical time, on the underside chart of BTCD, we see that these moments initiated a sharp decline (crimson arrows).

BTC and BTCD charts by Tradingview

Current market circumstances are very paying homage to all earlier durations. Bitcoin has accomplished a surge, set a new ATH at $67,000 and is at present consolidating. In distinction, Bitcoin’s dominance has began a decline. If it continues, it would actually result in an altcoin season.

The finish of a long-term consolidation

The remaining argument in favor of an upcoming altcoin season are the charts of the main altcoins. Many of those have simply damaged out from long-term consolidation and validated earlier resistance as help. Others, however, have already lately damaged by means of their ATH and are persevering with their rally.

The primary determinant of the altcoin market’s situation is Ethereum (ETH). The second cryptocurrency by market capitalization simply broke by means of its historic ATH of $4384 reached on May 12, 2021 (yellow line) and continues its upward motion.

ETH chart by Tradingview

We observe a related scenario on the charts of Polkadot (DOT) or Solana (SOL). Meanwhile, such TOP 20 cryptocurrencies as Binance Coin (BNB), Polygon (MATIC) or Chainlink (LINK) are within the means of breaking out of long-term consolidation patterns.

LINK, for instance, broke out above the resistance space within the $29-30 vary and concurrently closed above the long-term falling resistance line (blue). Once these ranges are validated as help, the altcoin is able to proceed the uptrend and try to interrupt by means of the essential resistance space at $35. If profitable, LINK won’t have many resistance ranges earlier than the ATH at $53.

LINK chart by Tradingview

For BeInCrypto’s earlier Bitcoin (BTC) evaluation, click on right here.

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