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After recent robust bullish performances by several altcoins, multiple analysts have tipped the altseason to have begun, building momentum for a major price explosion in the coming weeks. Interestingly, popular analyst EGRAG Crypto has weighed in on the discourse around a highly-anticipated altseason, predicting a potential market inflow of $627 billion. Related Reading Altcoins See Massive Inflows Amid Bitcoin’s Record Rally, But 2021 Bubble Warnings Persist 2 days ago Bitcoin Dominance To Crash By 33% As Altcoins Fly – Analyst
In an X post on Friday, EGRAG Crypto provided valuable insight on the market growth potential of altcoins in the upcoming altseason. The analyst employed the Volume Range Visible Profile (VRVP), an analysis tool to identify key support and resistance levels based on trading volume, to study the trading activity of Bitcoin across different dominance levels.
For context, the alt season is a period where altcoins significantly outperform Bitcoin in terms of price appreciation. It is characterized by a relative decline in Bitcoin’s market share as capital moves into other cryptocurrencies.
As shown in the weekly chart below, EGRAG Crypto notes that Bitcoin’s dominance is closing below its Value Area High (VAH) i.e. the upper boundary of heavy trading activity which currently acts as a resistance zone.
This development is particularly bullish for altcoins as it signals increasing selling pressure on Bitcoin which may weaken its dominance over other assets. Importantly, EGRAG Crypto also highlights the Value Area Low (VAL) i.e. lower boundary of heavy trading activity which is likely to act as support and target level for Bitcoin dominance in this altseason.
According to values drawn by the analyst, BTC Dominance will decline by 33.04% if it reaches its Value Area Low. Therefore, considering Bitcoin’s current market cap of $1.91 trillion, the altcoins are likely to record new inflows of $627 billion in the forthcoming weeks.
In addition, EGRAG Crypto also states Bitcoin Dominance will have a Point of Control (POC) target of 42% in this altseason. The POC represents a pivotal price/dominance level with the most trading volume and a decline below which signals a confirmative shift in market interest from Bitcoin to other cryptocurrencies. Source: EGRAG CRYPTO on X Related Reading Altcoins ‘Starting To Run’ After Reclaiming This Key Level, Altseason Around The Corner? 3 days ago Ethereum Remains Key To Altseason Charge
With more expert commentary on the altseason, analyst Michaël Van de Poppe has appraised the positive price performances of altcoins in the past month. Furthermore, the analyst states that if Ethereum (ETH), the largest altcoin by market cap, closes above 0.035 on the ETH/BTC chart for November, it will suggest a strong bullish period for altcoins in December.
At the time of writing, the altcoin market remains valued at $1.39 trillion representing 41.4% of the total crypto market cap. Altcoins market valued at $1.4 trillion on the daily chart | Source:TOTAL 2 chart on Tradingview.com Featured image from Medium, chart from Tradingview