Over the past 90 days, 15 out of the top 50 altcoins have outperformed Bitcoin (BTC), sparking speculation among investors that an altcoin season could be near. Whether altcoins will continue to surpass Bitcoin’s performance will likely become clearer in the coming weeks. Investors are closely watching the latest developments. Here’s the rundown…
Altcoin Season Index Rising, But Bitcoin Dominance Holds Strong
According to data from Blockchaincenter, the Altcoin Season Index recently climbed to 31 after being below 25 just days ago. However, for a true altcoin season to be confirmed, the index must reach 75. This would mean that 75% of the top 50 cryptocurrencies (excluding Bitcoin) must outperform BTC. Will this scenario play out?
Prominent Analyst Flags a Warning
Currently, 15 altcoins, or 30% of the market, have outperformed Bitcoin. Leading this momentum are projects like Sui (SUI), Fantom (FTM), Uniswap (UNI), and Dogecoin (DOGE). In recent weeks, while most altcoins lagged behind Bitcoin, the rising index now signals a potential altcoin season on the horizon.
Could Bitcoin Dominance Delay Altcoin Season?
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Bitcoin’s market dominance plays a critical role in the timing of an altcoin season. Following the recent U.S. presidential election, BTC reached a new peak above $76,000, pushing its dominance up to 60.61%. For an altcoin season to fully materialize, Bitcoin’s dominance would need to decrease. Although current trends suggest an altcoin season may be approaching, Bitcoin still largely directs market trends, making it crucial for investors to monitor Bitcoin’s market dominance closely.
Altcoin Market Cap Breaks Key Resistance
Despite Bitcoin’s stronghold, the altcoin market cap (TOTAL2), representing the total market cap of the top 100 cryptocurrencies excluding Bitcoin, has broken a significant resistance level. The TOTAL2 chart has moved out of a descending triangle formation.
After Current Downturn, Altcoin Season May Begin: Essential Guide for 30-100X Portfolios
The descending triangle pattern is often seen as an indicator of a downward trend. However, this breakout could signal the start of an altcoin season. If TOTAL2 surpasses $1 trillion, the outlook for altcoins may become increasingly positive. Conversely, a fall below the support line might indicate a renewed weakness for altcoins relative to Bitcoin. As The Bit Journal emphasizes, investors should remain aware of risks and conduct thorough research on projects before making investment decisions.
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