TLDR
As
Bitcoin
continues
to
dominate
the
cryptocurrency
market,
analysts
are
pointing
to
signs
that
an
“altseason”
–
a
period
when
alternative
cryptocurrencies
outperform
Bitcoin
–
may
be
on
the
horizon.
Despite
recent
downward
trends
in
altcoin
prices,
key
indicators
suggest
that
the
market
may
be
nearing
a
“momentum
bottom,”
potentially
setting
the
stage
for
a
significant
rally.
Jamie
Coutts,
Chief
Crypto
Analyst
at
Real
Vision,
highlighted
the
crypto
Top
200
Equal
Weight
Index,
which
tracks
the
performance
of
the
top
200
cryptocurrencies
by
market
capitalization
relative
to
Bitcoin.
While
this
index
has
been
trending
downward,
the
Altseason
Indicator
recently
hit
a
low
of
10%,
meaning
only
10%
of
the
top
200
cryptocurrencies
were
outperforming
Bitcoin
over
a
90-day
period.
Historically,
such
lows
have
preceded
sustained
rallies
in
altcoins.
“Altcoins
could
still
bounce
around
these
levels
for
a
while
before
we
see
a
concerted
take-off,
many
have
started
to
build
decent
bases,”
Coutts
noted.
He
also
pointed
to
the
daily
active
user
(DAU)
count
across
all
blockchains,
which
is
up
97%
year-to-date,
as
a
positive
sign
for
the
broader
crypto
market.
More
users
typically
translate
to
higher
asset
prices
due
to
increased
user
fees.
Another
popular
crypto
analyst,
known
as
Moustache,
shared
charts
suggesting
that
the
altcoin
market
cap
is
repeating
a
similar
setup
to
2020,
just
before
altcoins
embarked
on
“their
strongest
wave
in
the
bull
run.”
Moustache
believes
some
altcoins
are
ready
for
“round
2,”
with
the
potential
launch
of
spot
Ethereum
ETFs
providing
additional
momentum.
Bitcoin’s
market
dominance
remains
high
at
54%,
indicating
that
it’s
still
“Bitcoin
season.”
The
Bitcoin
dominance
chart,
which
measures
Bitcoin’s
market
share
relative
to
the
overall
crypto
market,
has
been
on
an
upward
trend
since
the
beginning
of
2024,
reaching
a
three-year
high
of
56.5%
in
April.
Is
it
Altseason?
For
an
official
altseason
to
be
declared,
typically
75%
of
the
top
50
altcoins
need
to
outperform
Bitcoin
over
a
three-month
period.
Currently,
only
37%
have
achieved
this
benchmark,
according
to
data
from
Blockchain
Center.
This
suggests
that
while
signs
of
an
altseason
are
emerging,
it
might
be
too
early
to
make
a
definitive
call.
One
key
cryptocurrency
to
watch
in
this
potential
transition
is
Ethereum.
The
ETH/BTC
ratio,
which
compares
Ethereum’s
price
to
Bitcoin’s,
is
showing
interesting
long-term
patterns.
While
short-term
weakness
is
possible,
the
long-term
chart
suggests
Ethereum
may
be
nearing
the
end
of
a
falling
wedge
pattern
that
began
in
late
2022.
A
breakout
above
resistance
could
signal
the
start
of
a
stronger
altcoin
market.
Analysts
note
that
for
a
true
altseason
to
begin,
the
ETH/BTC
ratio
would
need
to
maintain
a
strong
ascending
trend
and
eventually
surge
above
0.085
to
0.09
BTC.
Such
a
move
could
trigger
a
broader
altcoin
rally.
Go to Source
Author: Oliver Dale
