Aside from a new all-time high in the Bitcoin market, the last trading week also heralded some altseason shouts as a slight price decline by the premier cryptocurrency coincided with significant price rallies by major altcoins. A popular market analyst with the X username PlanD has weighed in on these recent market developments, highlighting three factors that would confirm the presence of an altseason.
A BTC.D Retest At 63% May Mark Crucial Altseason Moment – Analyst
Over the last week, a bullish rise in the altcoin market cap to $1.45 trillion sparked widespread speculations about the current status of the altseason. Interestingly, in an X post on July 19, PlanD outlines three market events that will signal the altseason’s commencement, namely a potential pullback in both Bitcoin and Ethereum, alongside a critical technical development in Bitcoin dominance (BTC.D).
Following Bitcoin’s ascent beyond $121,000 and Ethereum’s price rise above $3,400, PlanD says the first two signals to watch for are healthy corrections in these assets’ prices. Specifically, the analyst explains that pullbacks toward the $111,000 and $3,250 regions for Bitcoin and Ethereum, respectively, present an ideal situation that would allow capital to rotate from Bitcoin into altcoins, effectively causing a decline in BTC.D.
Far from indicating weakness, PlanD says this retracement could actually catalyze the rise broader crypto market. Notably, if Ethereum finds support at $3,250, the ETH/BTC pair could strengthen, creating a favorable setup for altcoin rallies. This is because a stronger ETH/BTC pair is often a precursor to altcoin outperformance, as it signals increased investor appetite beyond Bitcoin.
The third and perhaps most pivotal signal is unfolding in Bitcoin dominance. After months of holding above a rising support trendline, Plan D notes BTC.D has broken below it, signaling a potential change in market structure. However, the next test lies at the 63.40% dominance level. Should BTC.D retest this zone and fail to reclaim it, the analyst believes a new downtrend in dominance may begin, i.e., presenting the largest hallmark of altseason.
In case of this scenario, PlanD also tells investors to expect strong bullish momentum in tokens linked to sectors such as real-world Assets (RWA), artificial Intelligence (AI), and gaming beyond the large and medium-cap tokens on popular blockchains.
Crypto Market Overview
At the time of writing, the total crypto market cap is valued at $3.83 trillion following a 0.20% decline in the past day. More data from CoinMarketCap shows the Fear & Greed index sits at 69, suggesting a healthy level of risk appetite from investors. Importantly, the altseason index ranks at 42, indicating a rising momentum in the market’s favor for altcoins.