Over the past few weeks, the market has been in a wait-and-see mode, awaiting confirmation of altcoin season. During this period, altcoins showed promise as their prices soared.
Despite the optimization, some top altcoins have struggled to keep up with the upward trend. Amid this volatility, new predictions have emerged.
Analyst Declares Catalyst Is Ready for Altcoin Season
This is one of the key predictions made by Michaël van de Poppe, founder of MN Trading.
Bitcoin (BTC) will continue to lag altcoins for the rest of the year, according to van de Poppe.
In a post on X, the analyst acknowledged that BTC is performing well. However, he argued that recent history has rarely seen Bitcoin dominate in the second half of the year.
“Over the past three years, the market has been a bear market for altcoins in the first half of the year and a bull market for altcoins in the second half of the year.” He explained on July 17:
At press time, BTC is trading at $64,706, down from $66,189 on July 17.
Read more: 10 Best Altcoin Exchanges in 2024
Van der Popp also said the upcoming Ethereum spot ETF could also be a catalyst. In a previous article, BeInCrypto explained how this is important for validating altcoin seasons. However, if you look at the gains among the top 100, you will see that many altcoins are performing better than Bitcoin.
If more altcoins continue to outpace Bitcoin in terms of appreciation, altcoin season could be upon us.
Rising market capitalization of altcoins: Can Bitcoin be stopped?
However, it is important to consider indicators such as TOTAL2. This indicator shows the total market capitalization of the top 125 cryptocurrencies excluding BTC. When this indicator increases, it means that many altcoins are performing better than Bitcoin.
However, when the value falls, BTC outperforms the average altcoin. As you can see in the chart below, between July 8 and 17, the market capitalization of the top 125 cryptocurrencies increased from $871.1 billion to $1.17 trillion.
This rise, despite some pullbacks, supports the notion that altcoin season is upon us.
Additionally, the relative strength index (RSI), which measures momentum, is above the signal line. If this number continues to rise, altcoin prices may move in the same direction.
Read more: What are the best altcoins to invest in July 2024?
As things stand, Bitcoin's dominance may begin to decline ahead of the launch of the Ethereum ETF next week. In this case, the market may see significant volatility, and altcoin prices may start aiming for new highs.
However, if Bitcoin price hits all-time highs before other major cryptocurrencies, altcoin season could begin again.
