The speculations over the BTC price rally have been varying in the past few days as the star crypto is facing pressures on either side. The bulls display strength for a while, which is followed by bearish actions. These constant fluctuations have kept market participants on the edge and compelled them to accumulate at small pullbacks and extract profits at smaller upswings. Besides, BTC dominance is creating new highs, which suggests an altseason may follow. However, this time it could be slightly diverse, as indicated by a popular analyst.
One of the popular analysts, Benjamin Cowen, has been following the recent price movements and comparing them with those of the previous one. With this, the analyst says that the markets are not letting out strong signals for an altseason. Hence, Bitcoin may continue to dominate the markets for a long time.
The historical BTC dominance chart displays a diverse trend compared to the previous alt seasons in 2017–18 & 2021. The dominance dropped heavily during the past instances, which triggered a strong altseason. However, this time, the dominance is surging, forming constant higher highs and lows, suggesting the growing dominance of the bulls. Therefore, the analysts believe this is not an ‘AltSeason’. He says,
“Alt Season is when BTC dominance craters, as people take profits from BTC and put it into altcoins.
A macro BTC dominance uptrend, which is what we have been in, suggests that this is not alt season, nor has it been. This chart shows the last alt season we had was in 2021,”
Previously, the analyst shed light on the possibility of the second-largest token, Ethereum, marking fresh lows. This substantiates the bearish claim of the ETH price, which may further differ the AltSeason until it strengthens. To add more support to the bearish claim, the analyst also shares the Advance/Decline indicator, or A/D line, which is forming new lows.
The A/D line is used to identify potential buying or selling opportunities by analysing the number of cryptos that are gaining or falling in value. The A/D line is finding new lows in times when the prices of the altcoins are surging. This suggests that the cryptos are losing their value despite the overall bullish trend.
Collectively, the AltSeason does not appear to be on the edge and hence, the markets may remain consolidated or maintain an ascending consolidation until the Ethereum (ETH) price gains some momentum.
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