Altcoin Season Predicted as Bitcoin Dominance Drops to 71%

Crypto analysts are closely monitoring several indicators to predict the next altcoin season, a period characterized by significant gains in alternative cryptocurrencies. According to a prominent analyst, the next altcoin season will start once Bitcoin’s (BTC) Dominance level, or its percentage of the total market capitalization of the sector, starts to fall. The crypto strategist Rekt Capital suggests that the crypto king’s dominance level should start dropping sometime next year after it reaches 71%, though no specific date was mentioned.

Rekt Capital notes that Bitcoin dominance levels have drastically changed compared to the last cycle, and that its monthly Relative Strength Index (RSI) – a technical indicator that signals when an asset’s momentum is due to reverse course – is the highest it’s ever been. The Monthly RSI 60 (green) represented the peak for Bitcoin Dominance in August 2019 and December 2020. In previous cycles, monthly RSI 60 was the ceiling. In this cycle, monthly RSI 60 is the floor.

Another analyst, Danny Crypto, predicts that the next bull run and altseason could begin as early as April 7. He notes that key bullish signals are active and that this period might represent a final opportunity to invest in low-cap altcoins before the potential altseason starts. This view aligns with the idea that crypto markets often experience "shakeouts"—temporary declines that precede major upward trends. These shakeouts are seen as attempts to unsettle retail investors and could offer a final buying opportunity before the next rally.

Despite recent market volatility, analysts remain optimistic about the potential for altcoins to defy bearish trends. Several altcoins are approaching key price thresholds, setting the stage for potential rebounds or further declines. The market appears to be at a crossroads, awaiting direction from either Bitcoin’s recovery or altcoins finding independent momentum.

In summary, the next altcoin season is anticipated to be triggered by increased trading volume and user activity, rather than Bitcoin dominance. Analysts are closely monitoring the Altcoin Season Index and Bitcoin Dominance levels to predict the timing of the next rally. Despite recent market volatility, the potential for altcoins to defy bearish trends remains high, with several altcoins approaching key price thresholds. Investors are advised to focus on network activity and market participation when developing their altcoin trading strategies.