Altcoins
Is Altcoin Season Upon Us? Here’s What Bitcoin’s Performance Shows
There are reasons to believe that altcoin season is imminent based on recent Bitcoin price action. Altcoin season is known for being a time when other crypto tokens are starting to outperform the flagship crypto token.
Bitcoin will refresh for Altcoin season
Crypto analyst Rekt Capital said in an X (formerly Twitter) job that Bitcoin only has one final retrace before the halving before following a parabolic move after the halving. Crypto analyst Sjuul also highlighted in a Message how the funding rate is “slightly elevated” for Bitcoin at the moment, suggesting a correction is on the horizon.
With Bitcoin likely to be confronted with a significant correction, this presents the perfect opportunity for altcoins to make a run of their own. Ethereum, the second largest crypto token by market capitalization, looks set to lead the pack, reach $3,000 for the first time in almost two years. Meanwhile, some analysts have noted indicators that confirm that the Altcoin season is not far away.
Crypto analyst Crypto Prof noted that the Gaussian channel on the Altcoin Chart turned green after almost 4 years. Furthermore, these altcoins would have broken the previous resistance during the last weekly close. Crypto Prof further stated that the same thing happened in 2016 and 2020, during which the Altcoin bull run began.
Stockmonkey Lizards, another crypto analyst, also mentioned on its X platform that the altcoin is close. In the chart accompanying his post, he highlighted how the altcoin’s market cap was set to reach $10 trillion, compared to its current market cap of nearly $900 billion.
Investors increase their appetite for risk
Glassnode On-Chain Intelligence Platform noted in a recent report that their Altseason Momentum indicator showed a “growing investor appetite to move capital further along the risk curve.” This suggests that crypto investors are more willing to deploy a significant portion of their capital into altcoins in anticipation of higher returns.
Interestingly, this altcoin indicator has reportedly reported positive momentum since October 2023 before calming down briefly during the period. news sales event which occurred after the One-time approval of Bitcoin ETFs. However, the indicator once again signals this positive dynamic after being retriggered on February 4.
Glassnode further revealed that while Bitcoin’s dominance remains significant, there are signs that capital is shifting to other ecosystems like Ethereum, Solana, Polkadot, and Cosmos.
Data from the Blockchain Center also shows that the market is approaching an altcoin season. The altcoin season index currently stands at 61%, with a rise to 75% still needed before we can say altcoin season is in full swing.
BTC dominance rises above 53% | Source: Market Cap BTC Dominance on Tradingview.com
Featured image from Bitcoinist, chart from Tradingview.com