pubDate: “2021-11-03” heroImage: “/placeholder.svg” categories:
- “altcoin-news”
- “bitcoin-news”
- “latest” tags:
- “altcoin”
- “bitcoin”
- “crypto”
- “november” coverImage: “what-are-altcoins-and-why-do-they-exist.jpg”
Based on the text provided, here is a summary of the key arguments presented for an upcoming “altcoin season.”
*Note on Timeframe: The article references market conditions from late 2021 (e.g., Bitcoin’s $67,000 ATH, expectations for early 2022, and specific dates like May and September 2021).
Summary: 3 Technical Arguments for an Altcoin Season
1. Total Altcoin Market Cap (TOTAL2) is Ready to Explode
- Breaking All-Time Highs (ATH): The total altcoin market capitalization (excluding Bitcoin) is pushing past its previous ATH of $1.49 trillion.
- Bullish Chart Patterns: Analysts note an ascending triangle and a long-term “cup-and-handle” pattern on the weekly chart. This sets a technical target of $2.63 trillion (a 58% increase from the time of writing).
- Historical Fractals: The 2-week RSI and market structure closely resemble the 2017–2018 bull market. Analysts suggest this 3-step bull pattern could eventually push TOTAL2 into the $5–7 trillion range.
2. Bitcoin Dominance (BTCD) is Dropping
- The “Consolidation” Catalyst: Bitcoin recently surged 65% to $67,000 and entered a consolidation phase around $60,000. Historically, when BTC consolidates after a violent surge, Bitcoin dominance drops, funneling capital into altcoins.
- Bearish BTCD Structure: Bitcoin dominance failed to break above its July 2021 high of 49% and has been in a macro downtrend since early 2021. Long-term support for BTCD sits much lower at 39.5% and 35.5%.
3. Major Altcoins are Breaking Out of Consolidation
- Shattering All-Time Highs: Market leaders like Ethereum (ETH), Polkadot (DOT), and Solana (SOL) have broken through their previous historical ATHs and are in price discovery.
- Ending Multi-Month Ranges: Top-20 cryptocurrencies like Binance Coin (BNB), Polygon (MATIC), and Chainlink (LINK) are breaking out of long-term consolidation patterns. For example, LINK broke key resistance around $29–$30, clearing the path toward its $53 ATH.
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