Are We Standing at the Precipice of Another Major Altcoin Surge and Why?

I firmly believe so, with four compelling reasons.

Reason 1: Bitcoin's Breakout from Resistance Levels

Bitcoin has finally broken out of its six-month descending channel, crossing the 200 Daily MA and 20 Weekly MA. This breakthrough marks the start of a new upward trend. With the approaching Bitcoin Halving in 99 days, I do not foresee any lack of demand for Bitcoin. Similar to how the previous Bitcoin halving events spurred a front-run market, the upcoming event will likely have a similar effect. The altcoin market is typically driven by momentum from Bitcoin, so when Bitcoin begins to pump, altcoins will follow suit.

Reason 2: Altcoin Dominance/BTC Dominance Context

A less known but significant chart by Willy Woo illustrates the general performance of altcoins relative to Bitcoin. This chart has maintained an upward trend for seven years, finding support and resistance in two general lines. It broke out during the previous altseason from 2017 to 2018 and has since returned to find support on the 7-year support line. Following past trends, I believe it is primed for a significant pump, with altcoin dominance increasing and reaching the 7-year resistance line soon.

Reason 3: Long Absence of an Altseason

The chart above shows the periods between green and red lines representing altseasons. The last altseason was around 1.5 years ago, the longest gap we've seen in the recent price history. The prolonged over-extended altseason in 2017 and 2018 may account for this. Given the need for corrections and recovery, an altseason seems imminent.

Reason 4: Early Signs of Altseason

Interestingly, 10 out of the top 100 altcoins have already seen a 100% pump, though these were likely not organic. Many other altcoins are starting to show signs of pump activity as well. In fact, 80 of the top 20 coins are performing well against Bitcoin since the start of 2020. This is a strong indicator that an altseason is either underway or close to starting.

The price charts of these altcoins also show they have broken out of their 200 daily MA and major resistance levels, hinting at potential further significant gains.

If we look at the Bitcoin dominance chart, it has fallen by 3.75 percent recently, a pattern that historically leads to a further dump of 12.75 percent, bringing it closer to 54% Bitcoin dominance. This suggests a period of market volatility, which typically benefits altcoins.

Conclusion

After waiting for 1.5 years, Bitcoin has finally cleared the path for a major altcoin surge. The altcoins are ready to follow the pattern set during the previous relevant time periods, potentially driving significant growth. For now, I'm ready to invest in some altcoins, joining in the excitement.

*Disclaimer: The information provided herein is not financial advice. Please conduct your own research before making any investment decisions.