Analyst forecasts the duration of the altcoin season

The current market situation is described by Vladimir Kavetsky, the analyst of the Nanny Ventures project.

Last week, Bitcoin cleared the $60,000 mark but failed to hold above it. However, the week closed above $58,000, which can be regarded as a positive signal for buyers.

The price has been range-bound for several days now, trading in the $60,000-$57,000 range. The Bitcoin consolidation is allowing some altcoins to rise, hence we are observing a decline in the dominance index.

False breakouts in either direction from the range should not be ruled out in the near term.

Today the main intraday resistance is the zone $58,750-$59,000, as indicated by the POC on the hourly chart.

On the 4-hour chart, a clear battle between buyers and sellers with long shadows on candles is evident. Moving averages are effectively holding the price, preventing a close below the exponential moving averages (clearly visible in the green zones). Higher lows are rising, which together indicate buying strength and overall long expectations among market participants.

The dominance index broke through a two-year trendline and continued to fall below 57%. Technically the chart favours altcoins, but one should not forget that 50% is a strong psychological level, and the 50-57% range has been a zone of nearly half-year consolidation in 2018-2019.

The index is pressured by the arrival of new projects to the market. Do not rule out another test of 60% followed by a drop to 50%. Below this mark, the so-called altcoin parade will begin. The onset of an altseason is evidenced by inflows into Grayscale trusts — in our assessment, this period could last several months.

In a week, the cryptocurrency exchange Coinbase will conduct a direct listing of shares under the ticker COIN on Nasdaq. Market expectations for the event are highly positive, which could push Bitcoin and top crypto assets to new highs.

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