Altseason: Bitcoin's Dominance Challenged as Altcoins Surge

Altcoin investors are eagerly anticipating the next phase of the market cycle, with some analysts suggesting that the long-awaited Altseason is already underway. While opinions vary on the timing and extent of the Altseason, several market watchers have indicated that Altcoins are poised for a significant breakout.

CryptoQuant CEO Ki Young Ju recently shared his perspective on the Altseason, asserting that it has already begun. In a series of tweets, Ju suggested that the traditional Bitcoin-to-altcoin rotation may not occur this cycle, as stablecoin holders are favoring Altcoins. Ju also noted that Bitcoin is no longer the dominant quote cryptocurrency, and the Altseason is no longer defined by Bitcoin dominance. Instead, trading volume is the key metric, with Altcoins currently boasting 2.7 times the volume of Bitcoin.

Ju described this Altseason as highly selective and challenging, with only a few Altcoins possessing strong use cases and narratives expected to thrive. Despite the positive market sentiment, there is a lack of fresh liquidity, leading to intense competition among Altcoins. As a result, only a select few Altcoins are attracting new liquidity and experiencing significant gains during this Altseason.

Trader Crypto Yoddha has suggested that Altcoins are ready for the next leg up, following a similar pattern to the 2020-2021 cycle. During the last cycle, Altcoins experienced two legs towards their cycle top and all-time high (ATH) of $1.13 trillion. Yoddha pointed out that the market is currently completing the first round, having tested the last cycle's top during the post-election pump.

Analyst Rekt Capital has affirmed that the crypto market cap, excluding the top 10 tokens, has completed the second part of its Double Bottom formation. Altcoins have been consolidating between the $250 billion to $280 billion range since the February 3 correction. To confirm a breakout from its three-week resistance, Altcoins must close above $280 billion and retest this level as support, aiming to reclaim the $300 billion mark.

Similarly, analyst Carl Runefelt has stated that Altcoins have a parabolic move after breaking out of its two-month descending channel. Alts saw a 120% climb after breaking out of a