Crypto analyst Kevin Swenson believes that the altcoin season – a period during which altcoins significantly outperform Bitcoin (BTC) – is inevitable.
Swenson bases his forecast on the price actions of Bitcoin and Ethereum (ETH), explaining that the altcoin season could actually arrive very soon, as BTC has interrupted its parabolic trend and is aiming to consolidate.
He further emphasizes that at the same time, Ethereum, the leading altcoin, is on an exponential trend, which is likely the moment when altcoins begin to catch up with Bitcoin.
Swenson adds that the narrative has been focused on Bitcoin since early 2023, with events such as BlackRock’s application for a spot BTC exchange-traded fund (ETF), its approval, and Bitcoin’s halving. Now is the time for the situation to change.
Swenson also highlights Bitcoin dominance (BTC.D), which measures BTC’s market capitalization compared to the entire crypto market, as a key indicator signaling an upcoming altcoin season.
The decline in BTC.D suggests that altcoins are increasing in value faster than the flagship cryptocurrency.
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He said:
Looking at a weekly perspective, Bitcoin dominance is starting to decline. We haven’t seen a lower low yet, but we’ve broken the trend line and have lower highs. Historically, decreasing Bitcoin dominance initiates the altcoin season.
His analysis suggests that while Bitcoin consolidates, momentum may shift towards altcoins, leading to a period of significant gains for some altcoins.
