Cryptocurrency analyst Kevin Swenson believes that the altcoin season, a period where altcoins outperform Bitcoin (BTC), is inevitable. Swenson’s bullish prediction is based on the price trends of Bitcoin and Ethereum (ETH), explaining that the altcoin season could be approaching soon as BTC has broken its parabolic trend and is seeking consolidation. He further noted that Ethereum, a leading altcoin, is showing exponential trends, which could indicate altcoins catching up to Bitcoin. Swenson added, “Since early 2023, the narrative has been centered around Bitcoin with events like BlackRock’s application for a spot BTC ETF, its approval, and the [Bitcoin] halving. Now is the time for a change.”
Swenson also highlighted Bitcoin’s dominance (BTC.D), which measures BTC’s market value relative to the entire crypto market, as a key indicator of the imminent altcoin season. The decline of BTC.D signals that altcoins are growing in value at a faster pace than flagship cryptocurrencies, even though there are bullish signals for Bitcoin, its situation could worsen. Swenson suggested, “From a weekly perspective, Bitcoin’s dominance is starting to decline. While we have not seen a lower low yet, we have broken the trendline and have lower highs. Historically, the decline in Bitcoin dominance has triggered altcoin seasons.” His analysis suggests that with Bitcoin’s consolidation, momentum could shift towards altcoins, leading to significant increases in value for certain altcoins for a period of time.