Altcoins

Here’s What the Market Needs to See an Altcoin Season

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Bitcoin price drops typically spark both concern and joy, but recent cases have only involved the former.

Altcoins’ dependence on Bitcoin has compromised them, leading to the failure of Altcoin Season.

Where does Bitcoin fit in?

The price of Bitcoin has dropped dramatically 4% in the last 24 hours, falling to $54,300. The drop below $55,000 raises concerns among investors, as this level represents the last significant support before a potential drop to $50,900.

This $50,900 target matches the double top pattern seen in March and July, indicating a possible further 8% decline.

Bitcoin Price Analysis. Source: Trading View

Despite this, there is still hope for a rebound. If Bitcoin can recover and re-establish $55,000 as a support level, it could pave the way for the price to rally back to $58,800.

However, the drawdown has had an impact on BTC’s market dominance, albeit a very slight one. At the moment, BTC represents 54.64% of the entire cryptocurrency market cap. Despite the drawdown, 54.64% is still bearish for altcoins.

To know more: Top 12 Altcoin Exchanges for Cryptocurrency Trading in July 2024

Bitcoin Dominance. Source: Trading View

This will likely extend the Altcoin Season Comingpostponing the date to October, when macrofinancial market conditions will improve.

Altcoin season is far away

According to Altcoin Season Index, the market is currently experiencing Bitcoin Season. Typically, when 75% of the top 50 altcoins, excluding stablecoins, are outperforming BTC, an Altcoin Season is considered active.

However, this is not the case at the moment. The last few weeks have been terrible for altcoins as much as for BTC. As a result, the market is we are not even seeing an Altcoin month at the moment, let alone a Season.

To know more: What are the best altcoins to invest in July 2024?

Seasonal Altcoin Index. Source: Blockchain Center

Therefore, for altcoins to dominate the cryptocurrency industry and surpass Bitcoin, the entire market would need to improve.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.

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