Major coins face challenges as the Bitcoin season emerges

The total market capitalization of altcoins, excluding Bitcoin and Ethereum, has faced significant resistance, contributing to recent declines. However, according to several analysts, despite the short-term challenges, macro trends suggest that if the market follows a smooth structural pattern, altcoins could see growth in the future.

The Altseason index e Bitcoin dominance Trends are essential tools for understanding market movements. Sharp drops in Bitcoin dominance often signal the start of the altseason. However, the seasonal altcoin index recently reached 18, indicating that we are still in the accumulation zone.

Providing a bit of context, to know if we are in peak season, you can look at how altcoins perform compared to Bitcoin. The most common way to track this is to look at Bitcoin’s dominance; Sharp drops in dominance signal an altseason.

To make it more practical, there is an indicator called Altseason Index, created by blockchaincenter.net. This index evaluates the price change of the 50 largest coins based on market capitalization. If 75% of these coins outperformed Bitcoin over a 90 day period, it means we are in an altseason. The Altcoin Season Index indicates that the altcoin season may have already reached a local peak, with the market returning to Bitcoin season in the near term.

The same calculation is made for the periods of one month and one year. The scale goes from zero to one hundred, where 100% means that all the top 50 coins perform better than Bitcoin. Currently we can see that we are not even close to the altseason. At the moment the level is 18, which clearly indicates that we are not yet in high season. However, historical trends suggest that it fell below 10 before a run higher. In November 2023, the index reached 4.

Read also: Long-Term Bitcoin Holder Sells $1.2 Billion in Two Weeks as ETF Net Flows Turn Negative

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