In conclusion, the cryptocurrency market is entering the final days of 2023 with a positive and greedy sentiment that has been sustained for the past two months. This has allowed the market capitalization of altcoins to break free from an extended accumulation phase and remain at high levels throughout the year.
But when will the altcoin season arrive? This is a question that many investors and traders are concerned about, especially after two challenging years in the cryptocurrency market.
First of all, 2022 witnessed a significant market downturn, causing most altcoins to decline by a considerable percentage, with many top coins even losing up to 99% of their value.
By the end of 2023, the market began to recover, with Bitcoin surging by 180%, while altcoins have yet to demonstrate a similar upward trend as they did during the 2021 bull market.
One important signal for an impending altcoin season is the Altcoin Market Capitalization (TOTAL2). This market capitalization has surpassed a critical resistance level of $657 billion after an extended consolidation period. This is a positive sign, and the next resistance level could be $942 billion, marking the next long-term hurdle.
The emergence of the altcoin season is further supported by the long-term price structure on the chart and the breaking of important resistance levels by altcoin trading volumes.
Another important indicator is the Altcoin Season Index, which tracks the performance of altcoins compared to Bitcoin. This index is currently showing signs of a changing trend, and the altcoin season may be nearing.
Finally, Ethereum (ETH) is also showing positive signs. Although it has sometimes lagged behind Bitcoin, it has the potential to create a bullish price structure and significant value appreciation.