• Analysts believe that an altcoin sector rebound could be likely.
• BTC dominance and ETH/BTC ratio suggested a likely relief for the sector. 

The altcoin season momentum slowed in December after a wild run in November which pumped Dogecoin [DOGE], Ripple [XRP], and Hedera Hashgraph [HBAR]. 

Now, the next leg of the altcoin season could be imminent based on historical Bitcoin [BTC] dominance trends. 

Is the altcoin season closer?

According to crypto analyst TechDev 52, Bitcoin dominance (BTC.D) could drop in January, triggering the much-awaited altcoin season rebound. He said, 

“History tells us the candle that starts tomorrow is for altcoins.”

The chart, on a 6-month timeframe, showed that BTC Dominance (BTC.D) had hit long-term trendline resistance. A rejection at this level could lower BTC dominance, potentially allowing altcoins to recover strongly.

Additionally, the ETH/BTC ratio pointed to a likely bullish outcome for the altcoin sector. This ratio tracks ETH’s relative performance to BTC and is considered a barometer of the health of altcoins, given ETH’s status as the leading altcoin.

Blockchain analysis firm SwissBlock noted that the ETH/BTC ratio had bottomed as BTC.D struggled, suggesting that a rebound for the altcoin season was on the horizon.

In its Telegram broadcast, the firm said, 

“Bitcoin’s dominance is losing steam, and ETH/BTC has printed a higher low, possibly signaling a bottom. Is it time for altcoins to shine, at least for a while?” 

That said, some select altcoins performed well in the past week despite the overall market weakening. Virtual Protocol [VIRTUAL] gained nearly 30%, reaching $4 for the first time. Similarly, Gate Token [GT] and FTX Token [FTT] each rallied about 18%.

However, the broader altcoin sector remained flat, as indicated by the Altcoin Season Index, which was hovering around the neutral level. This suggests that alt-season momentum could either rebound or weaken further.

That said, there are increasingly more ETH bulls than BTC, a trend that might bode well for the king altcoin and the broader sector.