To determine whether we are in alt season, we use a number of indicators, including Bitcoin Dominance, the Altcoin Season Index, and the traditional phases of a bull market.
Bitcoin dominance appears to have peaked following a tweezer top candle formation on the monthly chart. The last time such a pattern occurred was at the beginning of the 2021 alt season, which saw Bitcoin dominance decline significantly as the altcoin market rallied to new highs.
With this current tweezer top, we can anticipate Bitcoin dominance to continue its decline, paving the way for a prolonged altcoin rally. However, while this is a strong indicator, it does not confirm alt season just yet, as dominance remains relatively high. Nonetheless, I believe we have likely seen the peak in Bitcoin dominance. If history repeats itself, dominance could decline to 35-40% over the next 10 months, leading to altcoins gaining substantial ground later in this period. It’s important to note that Bitcoin dominance peaking does not mean Bitcoin’s price has peaked. In the last cycle, dominance peaked 11 months before Bitcoin's price hit its high.
While Bitcoin dominance suggests alt season is still developing, the Altcoin Season Index indicates otherwise. The index has just crossed the critical 75 threshold, signaling that alt season is officially underway. This metric defines alt season as a period when at least 75% of the top 50 coins outperform Bitcoin. As of today, this condition has been met, marking the beginning of a significant altcoin market rally.
As discussed in our recent Morning Note articles and the November Rake Review, the crypto market is currently transitioning between phases 1 and 2 of the traditional bull market cycle. Ethereum, a key indicator, is struggling to consistently outperform Bitcoin. Until Ethereum establishes clear dominance over Bitcoin, the market remains in an early phase of the bull run.
For those feeling underexposed or concerned about missing out, now is the time to strengthen your Bitcoin position. This market is still in its early stages, presenting long-term believers with an excellent opportunity. Contact your Stormrake Crypto Broker to make the most of this moment.
Stormrake Spotlight: Fantom ($1.098)
Stormrake Spotlight: Fantom ($1.098)
Fantom has had another impressive performance in the Stormrake Spotlight, rallying 9% over the past week and consolidating around the $1 mark after a significant 40% increase the week prior. With strong technical indicators and the highly anticipated migration to Sonic this month, FTM is certainly one to watch.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
After reaching the bull flag target, Bitcoin experienced a healthy pullback, maintaining its bullish structure. The pullback established a higher low, while the bull flag breakout created another higher high. As long as Bitcoin stays above the previous higher low of $95.7k, the probability remains high for a move to $100k, using the 21 EMA as support.
BTC Total ETF Flows for 1 Dec: $ N/A million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Ethereum continues its gradual ascent toward the bull flag target of $3,820. ETH remains above the 21 EMA, using it as support, but it has faced strong resistance at $3,724, a level it has failed to breach four times in the past day. A successful breakout above this resistance could pave the way for a smooth rally to the target.
ETH Total ETF Flows for 1 Nov: $ N/A Million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
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Written by Alexandar Artis
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