- Analysts note a rising wedge pattern in Bitcoin’s dominance (BTC.D), nearing resistance at 57.55%.
- A rejection at this resistance could spark a rally in altcoins as traders seek alternatives.
- If the altcoin market cap surpasses $595.5 billion, targets of $727.9 billion and $825.5 billion are possible.
In recent market development, crypto analyst Jonathan Carter has been watching a crucial pattern form in Bitcoin’s dominance, BTCD. As per Carter, Bitcoin is presently forming a rising wedge pattern on the daily chart, and its dominance recently touched a significant level of resistance at around 57.55%. This technical pattern is often a harbinger of possible reversals, and traders are waiting to see if Bitcoin’s dominance will retreat from this resistance.
If Bitcoin’s dominance gets rejected at this level, a modest rally could ensue for altcoins as traders scour outside of Bitcoin for opportunities. This could mean that every move below the ascending support could mark the start of an altcoin season for those targeting the alternative coin’s market.
Altcoin Market Cap Could Surge to $825.5B
Adding to the anticipation, another respected analyst, Alex Clay, has turned his focus to the broader altcoin market cap. Clay has identified a bullish mid-term setup that suggests significant upside potential for altcoins.
The altcoin market cap has held strong due to a vital cluster of the 100-day Exponential Moving Average and a mid-zone support of $490 billion. Currently, it is re-accumulating inside a bullish flag pattern—a classic continuation signal in technical analysis.
Clay notes that now may be an opportune time for investors to start forming mid-term positions in alternative coins, with an eye on increasing their stakes more aggressively if the market cap flips above the critical $595.5 billion zone.
This could pave the way for further growth, targeting $727.9 billion and $825.5 billion in the middle term, at the very least, signaling substantial potential gains for those positioned correctly.
As Bitcoin’s dominance teeters and the altcoin market flashes signs of bulls, the crypto space is all set to get a dramatic shift. Investors and traders alike are keenly watching this development for shifting strategy as the market unwraps itself
Related | SUI Surge 30% in 24 Hours: Is This the Next Solana?
