The rise of Decentralized exchanges (DEX) has recently bolstered the alt season. 52% of significant altcoins demonstrated better performance than BTC in recent months. RSI and MACD show that they may continue to rise.
Analysts Predict 3x Surge, Breakout and Halving Cycles Signal Growth
The market analyst opines that the altcoin market might be expected to show a bull run. A majority of altcoins moved higher to capture more of the recent break out of a long-term resistance trend line. This breakout may indicate the start of the next alt season when small-cap coin start rising more than Bitcoin, providing a proper environment for those who invested in other cryptos.
The altcoin market isn’t just a flash point, there’s another bullish signal. A critical momentum indicator, the Relative Strength Index (RSI), has exhibited bullish divergence. When prices continue to decrease, but the RSI continues increasing, this pattern shows and indicates that the market could be primed for a reversal. A technical breakout along with RSI divergence presages a continuation of this rally and is entirely within the realm of the altcoin being strong at this point.
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Historical research shows that after the Bitcoin halving, altcoins grew exponentially. At the same time, halvings usually decrease the supply and increase the demand for cryptocurrency.
Mags noted that to date the coins have risen 21x during the previous halving cycle and could do the same 3x here.
Altcoins Outperform Bitcoin Over the Past 90 Days
According to Altcoin Season Index data, the top 50 altcoins have beaten Bitcoin in the last 90 days by 52%. Bitcoin had a 1.7% increase within this period, but quite a few altcoins had much stronger performance. SUI increased by 145.3% and TAX by 87.3%. This represents investor interest.
However, not all altcoins have done as well. With 48% of the top 50 underperforming Bitcoin this period, with POL dropping the most at -32.3%.
While the performance has been all over the place, the trend is overall bullish for the altcoin market. A large majority of tokens have outpaced Bitcoin in the last couple of months.
Bullish Momentum Builds as Total Market Cap Breaks Key Resistance
Bullish momentum has also been seen on the total cryptocurrency market cap. That’s excluding Bitcoin (TOTAL2), which recently broke above a descending trendline.
The altcoin market may be primed for more upside following this breakout. This implies that another breakout toward the upside is imminent. Key levels to watch are the resistance level at $1.27 trillion, which could act as a target if current trend remains.
The downside comes in the form of a break below the $850 billion support level. It can put the bullish outlook in reverse and see further consolidation. A bullish signal is shown by the MACD indicator, and cross-over indicates increasing buyer pressure with the rising green histogram bars adding weight to the idea of an extended rally.
