Bitcoin Indicators Turn Bearish: Will BTC Price Dip Trigger Altcoin Season This Time?

Some indicators are already pointing to a potential for continued decline in the price of BTC. This is coming after the price reached a new all-time high of around $109,000 three days ago.

Bitcoin price showed promising signs of recovery on Monday, following a weekend dip triggered by an all-time high. But some technical indicators are already suggesting a potential for continued decline in BTC price.

After reaching a new peak of around $109,000 on Friday, Bitcoin price began to slip. However, the decline was relatively moderate, with BTC price remaining above the key psychological level of $100,000.

One technical indicator that is suggesting a potential for further decline in Bitcoin price is the TD Sequential indicator on the daily chart. The indicator has generated a sell signal, which could mark the end of Bitcoin’s recent upward momentum.

A closer look at the chart reveals a technical analysis focusing on Fibonacci retracement levels and the TD Sequential indicator. At its current trading price of around $104,200, Bitcoin price appears to be hesitating near a resistance zone. The Fibonacci 0.786 level is situated at approximately $105,117, aligning closely with the recent high.

The sell signal is indicated by a “9” in green on the chart, suggesting that the uptrend may be losing steam. Key Fibonacci levels provide additional context for potential price movements. If a correction occurs, the 0.618 level around $101,435 could serve as a potential support zone.

Another crypto analyst, Ash Crypto, is highlighting a bullish technical formation on the Bitcoin Dominance (BTC.D) chart, suggesting the possibility of an upcoming altcoin season.

The BTC.D chart showcases a bearish rising wedge pattern, which could signal an imminent shift in the cryptocurrency market dynamics. A breakout to the downside in Bitcoin market dominance could be the catalyst for "Altseason 2.0".

This phenomenon occurs when investor funds begin to flow from Bitcoin into alternative cryptocurrencies, potentially triggering significant rallies across the altcoin market. As Bitcoin's market capitalization percentage declines, funds typically shift into altcoins, creating the conditions for altcoin season.

Investors and traders are advised to keep a close watch on two key technical indicators.

If these technical indicators play out as suggested, we could be on the cusp of a major market shift. A confirmed move below the Bitcoin dominance wedge, accompanied by increasing trading volume, would further validate the bearish outlook for Bitcoin and the bullish potential for altcoins.