- Altcoin dominance shows bullish divergence.
- Strong upside momentum could follow.
- Altseason may still be in early stages.
Altcoin dominance is flashing a bullish divergence, signaling that the market could be preparing for a major shift. Altcoin dominance measures the market share of altcoins compared to Bitcoin . When this chart trends higher, it often means altcoins are gaining momentum, outpacing Bitcoin’s performance.
The recent divergence indicates that despite corrections in certain tokens, the broader altcoin market is building strength. This setup could lead to significant rallies across multiple coins.
Early Stages of Altseason?
Many analysts believe we are still in the early stages of this altcoin cycle. Historically, altcoin dominance tends to rise sharply once momentum kicks in, leading to what the crypto community calls “altseason.” During such periods, smaller tokens can post outsized gains as traders rotate capital away from Bitcoin.
With the bullish divergence forming now, it’s possible that we are only at the beginning of this process. This could give traders and investors ample time to position themselves for the potential upside.
What to Watch Next
Key indicators to watch will be whether altcoin dominance continues to trend upward and if trading volumes expand across major altcoins. If momentum sustains, we could see many tokens break resistance levels and start multi-week rallies.
While risks remain in the market, the current divergence in altcoin dominance provides a strong case for optimism in the near to mid-term.
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