For the last two years in the crypto market, it has paid off to be in Bitcoin versus altcoins. However, a new BTC dominance chart shows why the tides are about to turn in favor of altcoins.
Bitcoin Crypto Market Dominance Remains Above 50%
At this very moment, Bitcoin, the top cryptocurrency by market cap, represents more than 50% of the entire crypto market. On one hand, this makes sense given its regulatory acceptance, first-mover advantage, and significant brand power. On the other hand, there are tens of thousands of altcoins out there and yet BTC is still dominant.
But even Bitcoin dominance goes through cyclical boom and bust phases where it loses its dominance to the rest of the crypto market. This is typically called “altcoin season.” The last one to occur was back in late 2020 into 2021, and it lasted only several months. Before that, the rally that coined the term altcoin season took place all of 2017.
With three to four years in between the 2017 rally, the calendar turning toward 2024 puts us yet another year closer to the next altcoin season. This is evident by price action and technical oscillators following sine waves.
Sine waves could point to the next alt season |
Riding The Wave To The Next Altcoin Season
According to , a sine wave is an S-shaped geometric waveform that oscillates periodically above and below zero. Sine waves can be used in technical analysis to help identify cyclical patterns in technical indicators and oscillators.
In the chart above, the sine wave suggests that indicators are ready to begin rolling over, with the wave overlaid matching the 1M Stochastic almost perfectly. Aside from some chop, the sine waves have followed the ebb and flow back and forth between Bitcoin and altcoin dominance for going on a decade.
If the tool accurately demonstrates the path ahead for Bitcoin dominance, the next altcoin season could be on the way soon enough. Bitcoin is approaching $40,000 and is becoming increasingly expensive for retail investors, who aren’t even paying attention yet to the crypto market.
When they do realize how expensive Bitcoin is again, right under their noses, retail investors will search for the “next Bitcoin” frantically, sparking the next altcoin season. The last time these phases occurred, Bitcoin was passing $10,000 in 2017, and $20,000 in 2020. Now in 2023, will $40,000 be the trigger for alts to finally outperform?
It's time for the ebb and flow to favor altcoins again
— Tony "The Bull" (@tonythebullBTC)
Tony is the author of the . Sign up for . Follow & on Twitter. Or join the for daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from Shutterstock, Charts from
Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.
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Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.
In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.
Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.
Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.
Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.
In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.
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