An alt season (altcoin season) is something that virtually all crypto traders look forward to. It is a time where all cryptocurrencies other than bitcoin exponentially grow in value. From large caps to small caps, these digital coins can rise anywhere by 2x to 100x. If you’re finding the previous statement difficult to believe, that’s likely because you were not around the last time these crypto tokens pumped.
A crypto trader who goes by the name Paddy stash on Twitter has a reason for that. In a series of tweets, the analyst revealed why there hasn’t been an alt season in nearly two years and why we’re due for one soon.
Total Altcoin Market Cap Following the Same Pattern for Over Half a Decade
One of the tenets of technical analysis is that history tends to repeat itself. What happened in the past is very likely to happen again. We’re seeing this principle play out in the chart of the total altcoin market cap thanks to Paddy Stash.
According to the trader, the total market cap has been trading perfectly within an ascending channel. Since 2014, the altcoin index has bounced every single time it touched the diagonal support of the channel. It has also plunged every time it tapped the diagonal resistance of the channel. In a span of six years, the index has respected both the support and resistance levels of the ascending channel five times.
The trader emphasized that the total altcoin market cap is touching the diagonal support of the ascending channel. He feels confident that an alt season will happen soon because the index has followed the pattern five out of five times.
Weakening Bitcoin Dominance
Paddy stash validates his argument by illustrating how the bitcoin dominance index is showing signs of weakness. For those who are not aware, the index computes the market capitalization of bitcoin against the market cap of all cryptocurrencies. According to the analyst, the bitcoin dominance index getting rebuffed at 69 percent is an indication that the total altcoin market cap will be skyrocketing soon.
Overall, a Glorious Alt Season Is Upon Us
As the bitcoin dominance index shows weakness while the total altcoin market cap touches the diagonal support of its ascending channel, we now have a confluence of events where altcoins are due for a massive rally. That’s according to Paddy stash.
In another tweet, he shared a chart of the total altcoin market cap to show the two-year consolidation of altcoins.