Crypto analyst CrypFlow has revealed that the signal used for the last 2 altcoin seasons has returned. The analyst pointed to bullish indicators of the ‘Others’ chart against Bitcoin, which suggest capital could flow into lower-cap tokens.
Signal Points to New Altcoin Season as Capital Flows Out of Bitcoin
In one X messageCrypFlow stated that the signal that started the last two altcoin seasons is forming again. He explained that for each major expansion of altcoins has started the same way, with the other/Bitcoin chart breaking out of a falling wedge, and then the Squeeze Momentum turning green.
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The analyst noted that when these two indicators align, altcoins start to massively outperform Bitcoin, as seen during the 2017 and 2021 altcoin seasons. However, he noted that this cycle was different as the Squeeze Momentum remained red for years after the Peak of the 2021 bull cycle.
CrypFlow noted that this meant a longer period Bitcoin dominancewith no real altcoin season having occurred since the last one in 2021. However, that could soon change as the others/BTC chart has broken out of a new multi-year falling wedge and momentum is rising again. The analyst added that if the Squeeze Momentum turns green, the same conditions that caused previous altcoin seasons could return.
CrypFlow also said that when that happens, the biggest moves usually start when no one expects them. Blockchain Center data shows that it is not yet altcoin season, with the index currently at 49. The altcoin seasonal index must reach 75 to be classified as an altcoin season, with 75% of the top 50 coins by market capitalization outperforming Bitcoin over that period.
Bitcoin currently continues to lead the way, with altcoins mirroring the price action. Notably, BTC’s dominance currently stands at 58%, a level it has maintained since the beginning of the year. Crypto analyst Javon Marks also echoed CrypFlow’s sentiment, noting that similarities and macro trends in altcoin lineups still indicate that altcoin season is still in its early stages.
Another sign pointing to an Altcoin season
In one X messagecrypto analyst CW revealed that Ethereum is forming an 8-year convergence and will break it during this bull market. The analyst stated that this altcoin season will play out at the level of the 2017 cycle, and not at the level of 2021. “Investors don’t remember how strong the 2017 altcoin season was. The 2026 alt season will be stronger than 2021,” he added.
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Amid predictions of an impending altcoin season, market expert Benjamin Cowen has suggested the focus should be on Bitcoin. In one X messagehe said that over time everything would eventually end up in the cryptoverse bleeds back to Bitcoin. He added that after people come up with all kinds of different things, but after a cycle or two it all “flows back to the king.”
Featured image from Pixabay, chart from Tradingview.com