Altcoin Buying Zone Confirmed? Analysts See Opportunity as Bitcoin Dominance Hits Peak

Crypto analysts suggest now may be the ideal time to accumulate altcoins as Bitcoin dominance nears a reversal and altcoin volumes signal a buying phase.

After weeks of sluggish performance and red charts, the cryptocurrency market may be preparing for a shift—one that could mark the beginning of a long-awaited altcoin season. With total altcoin market capitalization down nearly 45% from its January high of $1.64 trillion to $931 billion, many investors are wondering whether now is the time to re-enter the market.

According to renowned crypto analyst Darkfost, current trading patterns suggest just that. He claims the market has entered a strategic “buying zone” for altcoins, marked by a decline in trading volume below the yearly average—a historically reliable signal.

Darkfost pointed to a key chart that compares 30-day stablecoin-paired altcoin trading volumes with the broader yearly average. Historically, when short-term trading volume drops below the annual baseline, it has preceded major upswings. The last time this occurred was in September 2023, just before a broad rally across mid- and low-cap coins. Now, that same signal has flashed once again.

Bitcoin Dominance at a Crossroads

Another major factor at play is Bitcoin’s dominance (BTCD)—currently sitting at 63.50%—which measures BTC’s share of the total crypto market cap. According to analyst Mister Crypto, BTC dominance is nearing a key resistance while forming a rising wedge pattern, typically interpreted as a bearish signal.

Mister Crypto suggests that if the wedge breaks down, it could mirror the dramatic BTC dominance decline observed in 2021. Back then, the shift away from Bitcoin paved the way for an explosive altcoin rally. Some speculate that a similar move now could see Bitcoin dominance drop significantly—potentially triggering a “30x altcoin rally,” as Mister Crypto puts it.

Mixed Signals from Altcoin Season Index

Despite the bullish projections, the Altcoin Season Index tells a more cautious tale. The index, which evaluates the relative performance of the top 50 altcoins against Bitcoin over the past 90 days, currently stands at a low 18 out of 100.

A score under 25 suggests we are firmly in a Bitcoin-dominated market, with altcoins struggling to keep up. A true “altcoin season” typically begins when the index moves past 75, signaling widespread outperformance of altcoins.

Still, some analysts argue that the low index reading, when combined with other accumulation signals and volume metrics, may serve as a contrarian indicator—potentially setting the stage for a surprising rally.

What’s Next?

With Bitcoin dominance at critical resistance, falling altcoin volumes, and multiple historical signals flashing green, investors are paying close attention. If patterns from 2021 and 2023 repeat, the crypto market could be gearing up for a strong altcoin-led breakout.

While timing the market perfectly remains a challenge, many are now using dollar-cost averaging strategies to slowly accumulate promising altcoins in preparation for a potential Q2 surge.

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