Altcoins
Is it time for altseason? Analysts say altcoin market is near ‘momentum bottom’ — TradingView News
The altcoin market has been in a downtrend for the past two weeks, but a key indicator suggests the recent decline could signal a “relative momentum bottom,” which, if history repeats itself, could soon see a “concerted takeoff,” according to cryptocurrency analysts.
According to Jamie Coutts, lead crypto analyst at Real Vision, the Crypto Top 200 Equal Weight Index is “still down, but the Altseason indicator shows that the recent drop when it hit 10% was likely a relative momentum bottom.”
The Crypto Top 200 Equal Weight Index is an equally weighted index that aims to track the performance of the top 200 cryptocurrencies by market capitalization, starting with Bitcoin.
Coutts shared the chart below, which shows that the index has been trending lower, with the Altseason Indicator hitting a low of 10%. This means that “only 10% of the top 200 have outperformed BTC over a 90-day look back,” the analyst explained.
Historically, this has marked a low point for the market, preceding a sustained rally in altcoins.
“Altcoins could still bounce around these levels for a while before seeing a concerted takeoff, many have started to build decent bases.”
Coin’s Telegraph
Coutts also took into account another indicator of the broader cryptocurrency market, namely the daily active user (DAU) count, to support his prediction on the direction of the altcoin market.
DAU is a metric that reflects the number of unique public addresses transacting on a blockchain each day.
Coutts noted that DAU counts across all blockchains have increased 97% year-to-date, suggesting that “growth continues unabated.”
More users means more usage fees, which translates into “higher asset prices,” he said.
“I think some altcoins out there are ready for round 2,” noted cryptocurrency analyst Moustache in a July 15 blog post, adding that the highly anticipated launch of Ethereum spot ETFs could provide the necessary wings.
In a previous post, Mustache shared the following chart showing how altcoin market caps were repeating a similar pattern to 2020 before embarking on “their strongest wave yet in the bull run.”
It’s still Bitcoin season
Bitcoin Dominance Chart: Bitcoin Measurement 
This indicator has been in an upward trend since early 2024, reaching a three-year high of 56.5% on April 13. At the time of publication, BTC dominance is at 54%, indicating that it is still Bitcoin season.
This means that altcoins are still underperforming Bitcoin.
According to Blockchain Center data, only 37% of the top 50 altcoins have surpassed BTC in the last three months. While this is a positive sign, it is still not enough to declare an altcoin season. To declare an altseason, this percentage must exceed 75%.
This means that while the first signs of an altcoin season are starting to emerge, it may still be too early to make any predictions.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk and readers should conduct their own research when making a decision.