Altcoins
Altcoin Season Index at 35: What does it take to trigger a boom?
- Bitcoin dominance remained above 50%.
- The altcoin season has not yet started despite recent market movements.
Bitcoin [BTC] has seen impressive price trends since the start of the year, and recently, Ethereum [ETH] also showed significant upward movements.
With the current trajectory of ETH and spikes in the value of various other assets, the question of whether a altcoin the season could be underway is raised.
Altcoin season has not started
Usually when Ethereum begins to recover, this may signal the start of altcoin season. However, for the season to fully start, other indicators must also show significant changes.
As of now, the Altcoin Season Index on blockchaincenter.net stands at 35. For the index to indicate an “altcoin season,” 75% of the top 50 coins must outperform Bitcoin.
Source: blockchaincenter
Bitcoin dominance dampens altcoin season
A decrease in Bitcoin dominance can contribute to the appearance of altcoin season as traders diversify their holdings. They invest in other cryptocurrencies, thus moving the market capitalization away from BTC.
Currently, the market capitalization of cryptocurrencies is around $2.55 trillion, according to CoinMarketCap. BTC dominance is over 52%, leaving altcoins with less than 50% market share. Ethereum holds 18.2%.
Additionally, the price of BTC tends to stabilize and remain stable after a significant price trend. This stability may encourage market participants looking for short-term gains to sell their Bitcoin and turn to altcoins.
Additionally, the high price of BTC may pose a barrier for new traders, who may opt for altcoins instead. This investment shift may contribute to a broader redistribution of market capitalization towards altcoins.
How Ethereum and other top altcoins performed
Although the Bitcoin the season is underway, Ethereum and several altcoins like Pepe [PEPE] And dog hat [WIF] have seen substantial gains recently. The analysis shows that PEPE has outperformed Bitcoin by over 1,000% over the past three months.
Its daily time chart indicates several recent all-time highs and a strong uptrend, as confirmed by its relative strength index (RSI).
Similarly, WIF increased by over 800% during the same period and remained in a strong uptrend. At the time of writing, WIF is trading around $3.70, with an increase of almost 9%.
Source: Santiment
Is your wallet green? Check ETH Profit Calculator
Ethereum is also experiencing a strong uptrend in the oversold zone, according to its RSI. It is trading at around $3,890, with a modest increase of less than 1%.
These moves suggest that even though Bitcoin dominates, significant momentum is building in the altcoin market.