As crypto markets lose $110B over the past week, Bitcoin tightens its grip as investors flock to safety pushing market dominance to 9-week highs of 56.5% of the total crypto market cap.
While the short-term trend favors Bitcoin, Legendary crypto analyst Moustache recently pointed out a potentially bearish signal on the Bitcoin 3W chart, raising speculation about the possibility of an upcoming Altseason.
Formation of Bearish CrossΒ
In a recent analysis, Moustache points out the formation of the bearish cross on the 3-week chart for Bitcoin dominance, hinting towards a change in the market sentiment. Considering a historical trend, such occurrences have led to a shakeout in the altcoin market before the beginning of the Altcoin season.
Moreover, Moustache shows his confidence in the altcoin market by stating, βIβm not selling; on the contrary, Iβm adding quality alts to my bags.βΒ
This statement reflects his confidence in the potential of selecting altcoins and urged investors not to panic.
Historical Pattern Hints Upcoming Alt Season
In addition to the Bitcoin dominance analysis, Moustache sheds light on changes observed in the 3W Gaussian channel indicator, shifting from red to green. This technical analysis tool used to understand market sentiment and potential price movements, is highly regarded for its accuracy in predicting market trends.
The last time such a rare occurrence happened was in 2020, preceding an extended period of Altseason. This historical pattern adds weight to Moustacheβs observations, further fueling curiosity among investors and traders.
Current Altcoin Market
The crypto market took a hit last week, losing a whopping $110 billion in total market capitalization. While Bitcoin saw a minor 3% drop, altcoins bore the major brunt of the losses. Many altcoin projects suffered significant declines, sparking concerns among investors.
However, some remain optimistic about the potential for a quick rebound in the altcoin market. Despite the recent setbacks, there is hope that altcoins will recover swiftly from the downturn.
