Is Altcoin Season Upon Us? Here’s What Bitcoin’s Performance Shows
February 21 2024 - 3:00PM
NEWSBTC
There is reason to believe that the altcoin season is imminent
based on Bitcoin’s recent price action. Altcoin season is known to
be a period when other crypto tokens begin to outperform the
flagship crypto token. Bitcoin To Cool Off For Altcoin Season
Crypto analyst Rekt Capital stated in an X (formerly Twitter) post
that Bitcoin has only one last Pre-Halving retrace before it goes
on a parabolic move post-halving. Crypto analyst Sjuul also
highlighted in an X post how the funding rate is “mildly high” for
Bitcoin at the moment, something which hints that a correction was
on the horizon. Related Reading: XRP Refuses To Back Down As
Crypto Analyst Identifies When Price Will Rally To $2 With Bitcoin
likely to face 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 cap, looks set to lead the
pack, hitting $3,000 for the first time in nearly two years.
Meanwhile, some analysts have noted indicators that confirm that
the Altcoin season is not far off. Crypto analyst Crypto Prof
noted that the Gaussian channel on the Altcoins chart has turned
green after almost 4 years. Also, these altcoins are said to have
broken through the previous resistance from the last weekly close.
Crypto Prof further stated that the same thing happened in 2016 and
2020, the period in which the Altcoin bull run started.
Stockmonkey Lizards, another crypto analyst, also mentioned on his
X platform that the altcoin is close. In the accompanying chart on
his post, he highlighted how the altcoin market cap was going to
run to $10 trillion from its current market cap of almost $900
billion. Investors Increasing Their Risk Appetite
On-chain intelligence platform Glassnode noted in a recent report
that their Altseason Momentum indicator has shown a “growing
appetite from investors to move capital further out on the risk
curve.” This suggests that crypto investors are more willing to
deploy a significant amount of their capital to altcoins in
anticipation of greater returns. Related Reading: Crypto
Analyst Predicts 10X Move For Filecoin (FIL) To $70, But Can It
Reach ATH? Interestingly, this altcoin indicator is said to have
signalled positive momentum since October 2023 before briefly
cooling off during the sell-the-news event that occurred after the
Spot Bitcoin ETFs approval. However, the indicator is once again
signalling this positive momentum having been retriggered on
February 4. Glassnode further revealed that, while Bitcoin
dominance remains significant, there are signs that capital is
being rotated into other ecosystems like Ethereum, Solana,
Polkadot, and Cosmos. Data from Blockchain Center also shows
that the market is gearing closer to an altcoin season. The altcoin
season index currently stands at 61%, with a rise to 75% still
needed before it can be said that the 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
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