The crypto data aggregator Santiment is issuing warning to crypto traders, saying that the end of the current altseason is likely on the horizon.
In a new blog post, the crypto analytics firm says altcoins are likely on their last legs as Bitcoin’s dominance heads down to a historical level of support.
“The next support for a weekly dominance is around 56%. We could also go all the way to 54%. At these levels, dominance will be looking for support and it should normally coincide with a lot of hype. Extreme and confident. Like ‘LINK is a new paradigm,’ ‘DeFi a new paradigm.’ You will hear the talks about paradigm everywhere. And this is where the story ends. A turnaround.”
Santiment believes that Bitcoin (BTC) will eventually reclaim dominance as it continues to show bullish signals en route to $15,000.
Maksim Balashevich, Santiment founder and CEO, echoes the analysis that the end of altseason is in sight as many altcoins flash overheated signs.
“Prepare to start closing positions or exiting all this alt because once Bitcoin finds the next support, based on what I see on this chart, it’s around 56[%]… For sure, many alts are overwhelmed already, no doubt, because this is how it happens.”
But not all analysts are convinced that the altcoin party is about to be over. DataDash founder Nicholas Merten believes that altcoins have more room to grow.
“A nice steady uptrend here, very healthy, showcasing that a lot of the small and mid-caps are starting to really make massive multiples. ETH (Ethereum) is gaining some serious traction back in the market. A lot of other protocols doing the same…
I don’t really see much significant resistance for this. You could say that this support range here, and it’s a big even 40 points. We might see some turn back here so we’ll keep an eye out for this. But again, so far, we’re not fighting the trend and there’s no real significant resistance here in this case.”