Beyond Bitcoin’s recent peak, last week’s trading also triggered discussions about altseason, as a minor dip in Bitcoin’s price coincided with major altcoins experiencing substantial gains. A well-known market analyst, using the X handle PlanD, has shared insights on these market changes, identifying three key indicators that would confirm the onset of altseason.
BTC Dominance Retest at 63%: A Potential Turning Point for Altseason – Analyst
The past week saw the altcoin market cap rise to $1.45 trillion, fueling speculation about the status of altseason. On July 19, in an X post, PlanD detailed three market occurrences that would mark the beginning of altseason: a possible correction in Bitcoin and Ethereum, coupled with a significant technical shift in Bitcoin dominance (BTC.D).
Following Bitcoin’s surge past $121,000 and Ethereum’s climb above $3,400, PlanD identifies the first two signals as healthy price corrections for these assets. The analyst suggests pullbacks to around $111,000 for Bitcoin and $3,250 for Ethereum would create an optimal environment for capital rotation from Bitcoin to altcoins, thereby reducing BTC.D.
Rather than indicating weakness, PlanD asserts that such retracements could boost the broader crypto market. Notably, if Ethereum stabilizes at $3,250, the ETH/BTC pair could strengthen, paving the way for altcoin rallies. A stronger ETH/BTC pair often precedes altcoin outperformance, signaling a shift in investor interest beyond Bitcoin.
The third and potentially most crucial indicator involves Bitcoin dominance. After maintaining a position above a rising support trendline for months, PlanD notes that BTC.D has broken below it, suggesting a possible market structure change. The critical test now is at the 63.40% dominance level. If BTC.D retests this zone and fails to reclaim it, the analyst anticipates a new downtrend in dominance, which is a key hallmark of altseason.
In this scenario, PlanD advises investors to anticipate strong bullish trends in tokens related to sectors such as real-world assets (RWA), artificial intelligence (AI), and gaming, expanding beyond large and medium-cap tokens on major blockchains.
Current Crypto Market Snapshot
Currently, the total crypto market cap stands at $3.83 trillion, reflecting a 0.20% decrease over the past day. Additional data from CoinMarketCap reveals the Fear & Greed index at 69, indicating a healthy risk appetite among investors. Notably, the altseason index is at 42, signifying a growing momentum favoring altcoins in the market.
