On December 4, the Altcoin Season Index hit 88, suggesting that non-Bitcoin cryptocurrencies may outperform the leading coin. However, altcoin season chances may have taken a huge hit.
Nonetheless, it looks like the much-anticipated season will still return. Here are three indicators that suggest many of the top 50 cryptocurrencies could soon see notable gains.
Alts are pushed down again.
Altcoin season refers to a period when altcoins outperform Bitcoin in terms of market capitalization growth. The Altcoin Season Index measures these trends to determine whether 75% of the top 50 cryptocurrencies are outperforming Bitcoin.
Typically, an index value above 75 signals the start of altcoin season, while a value of 25 reflects Bitcoin’s dominance. However, the index has now fallen to 49, highlighting the altcoin’s retreat as Bitcoin regains a stronger position in the market.
But despite the decline, it doesn’t look like alt season is over. One indicator that suggests this is Bitcoin’s dominance.
Bitcoin’s increasing dominance signals a growing preference for Bitcoin over altcoins, especially during periods of market uncertainty. This trend suggests that investors view Bitcoin as a safer option, given its relative stability and solid market position.
As dominance increases, interest in smaller cryptocurrencies may decline, potentially reducing capital inflows into altcoins. A few weeks ago, Bitcoin’s dominance rose to 62%, suggesting that the altcoin may not continue to be a close second.
However, at the time of writing, it has fallen to 58.82%, indicating that the altcoin has some dominance. If the decline continues, BTC prices may fall and altcoin prices may soar.
Altcoin market caps are still rallying.
TOTAL2 market cap, which tracks the top 125 altcoins, recently fell to $1.35 trillion, suggesting non-Bitcoin assets are underperforming. Such declines are often a sign that altcoin season may be delayed as Bitcoin dominates the market.
But there is also a silver lining. TOTAL2 has broken through the descending triangle, signaling a possible trend reversal. Although altcoin season may be struggling for now, this breakout means that altcoins could gain momentum once trading volume starts to increase.
This increase in trading volume could push TOTAL2’s market cap to $1.65 trillion, signaling a resurgence of altcoin season opportunities and potentially higher prices.
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