Altcoins
Bitcoin (BTC) Price Drops Below $55,000 – Altcoin Season Is in the Making
BTC Price today it dropped dramatically below $55,000, invalidating the early altcoin season predictions. Bitcoin has recorded its worst weekly performance this year, it was in this area 4 months earlier in February.
This downtrend is the aftermath of events that began when Bitcoin hit an all-time high of $73,803 in March: Spot ETF influx, liquidations, US election uncertainty, and now MT Gox redemptions. While the greedy events have occurred, the scary events have had a major impact that has caused the largest cryptocurrency to drop 21% from its all-time high.
Some major altcoins also saw double-digit losses, invalidating speculations about the start of the altcoin season.
In an analysis, the Raw buying and selling pressure indicator shows how the buying and selling pressure seems to find a neutral phase. A pullback is expected from here
Bitcoin Dominance Adjusts in Line
At press time The price of Bitcoin is$54,308 with a dominant market cap of 55.20%, down from 53% last week after BTC price dropped below the psychological support level of $57,000.
BTC dominance in the big picture is below the bullish trend line created at the beginning of the year. BTC.D traveling below this line is crucial unless a black pull is made above it.
Bitcoin Dominance Chart
Altcoins have dampened the enthusiasm
With the fall of Bitcoin dominance, altcoins are expected to fill the space, but the drop in BTC price leads other altcoins to behave bearishly. Some coins like Abritrum (ARB) price have hit an all-time low in this turbulence.
In a 90-day performance analysis of the top 50 coins, only 7 of them recorded gains and only 12 of them surpassed Bitcoin, of which 4 recorded losses.
Typically, during altcoin season, there needs to be at least 75% of altcoins that need to outperform Bitcoin to gear up. In this case, the numbers aren’t too favorable.
This shows that the market still needs further observations to start the alternative season.
Top 50 Altcoins Performance. Source: Blockchain Center
So when will the alternate season start?
As can be seen from the altcoin season index, the reading stands at 24, with only a reading above 75 indicating a potential start of the altcoin season.
Below 25 is considered the Btcoin season.
Seasonal Altcoin Index. Source: Blockchain Center
As for the latest move, it took 3 months to go from below 25 to above 75, so we can expect the altcoin to start in mid-October.
Read also: MtGox Begins Refunds; Will Crypto Market Crash Again?