Altcoins
Is it time for altcoin season?
The price of Bitcoin (BTC) has dropped significantly in recent days, even losing a critical support level.
This seems to have fueled investors’ hopes that the altcoin season is starting, but the truth seems to be quite different.
Bitcoin’s Dominance Slips
Bitcoin price hovers around $58,000 at the time of writing, after losing the psychological support level of $60,000 this week. This has also led to a notable decline in Bitcoin (BTC.D) dominance.
BTC Dominance was observing a macro bullish trend that was uninterrupted since the beginning of the year. However, the end of June and the beginning of July were not kind to the cryptocurrency market, resulting in BTC.D sliding below the bullish trend line. Currently, this dominance is at 54.70%.
Bitcoin Dominance. Source: Trading View
This led many to believe that the altcoin season might have begun. However, as Bitcoin fell, so did most of the altcoins on the market. Many, such as Arbitrum (ARB) even recorded a new all-time low.
Looking at the performance of the top 50 non-stable altcoins, we can see that only seven tokens have seen gains. In total, about 13 tokens have managed to surpass BTC, with five of them seeing losses.
Typically, for the altcoin season to begin, at least 75% of these 50 tokens, or 38 altcoins, must They perform better than BitcoinSince this is far from being true, it can be said that the market still has some time before we see the start of the altcoin season.
To know more: Top 12 Altcoin Exchanges for Cryptocurrency Trading in July 2024
How long until altcoin season?
Altcoin Season The index shows that due to market losses, the Bitcoin season is currently active. The index ranges from 0 to 100, with values below 25 signaling the Bitcoin season, and currently it is at 24.
To know more: What are the best altcoins to invest in July 2024?
When this value is higher than 75, the Altcoin season is considered activewhich could take a few months. Last time, it took the market about three months to transition from BTC to Altcoin season. If we consider the same interval this time, we can expect the Altcoin season to start in early October.
Disclaimer
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