Will Alts Price Still Climb?
On December 4, the Altcoin Seasonal Index hit 88, indicating that non-Bitcoin cryptocurrencies may perform better than the number one cryptocurrency. However, altcoin season opportunities could take a huge hit.
Still, the much-anticipated season seems likely to return. The following three indicators suggest that many of the top 50 cryptocurrencies may soon see significant gains.
Alts are depressed again
Altcoin season is a period when altcoins outperform Bitcoin in terms of market capitalization growth. The Altcoin Season Index measures this trend, determining whether 75% of the top 50 cryptocurrencies are performing better than Bitcoin.
Typically, an index value above 75 indicates the start of the altcoin season, while an index value of 25 reflects the start of the altcoin season. Bitcoin Dominance. However, as of now, The index dropped to 49, highlighting the setbacks for altcoins as Bitcoin regains a foothold in the market.
But despite the shrinkage, Alternative season doesn’t seem to be over yet. One indicator that indicates this is Bitcoin’s dominance.
Increased Bitcoin dominance often means a preference for Bitcoin over altcoins, especially during times of market uncertainty. This trend suggests that investors view Bitcoin as a safer bet given its relative stability and established market position.
As dominance increases, interest in smaller cryptocurrencies may decline, potentially resulting in lower capital inflows into altcoins. A few weeks ago, Bitcoin’s dominance climbed to 62%, suggesting Altcoins probably won’t Continue to be the second line
But as of this writing, the ratio has dropped to 58.82%, indicating that altcoins have taken some share. If the decline continues, then Bitcoin prices could fall while altcoin prices could soar.
Altcoin market capitalization still expected to rise
The market capitalization of TOTAL2, which tracks the top 125 altcoins, has recently fallen to $1.35 trillion, indicating the underperformance of non-Bitcoin assets. This kind of decline usually indicates that the altcoin season may be delayed, Bitcoin Dominates market.
However, there is a glimmer of hope: TOTAL2 has broken out of the descending triangle, signaling a potential trend reversal. While the altcoin season may be facing setbacks right now, this breakout means Altcoins may gain momentum If volume starts to rise.
If this volume picks up, TOTAL2’s market cap could climb to $1.65 trillion, signaling a resurgence of altcoin season opportunities and potentially driving prices higher.
Disclaimer
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