Key Indicators to Watch for Altseason.
Key Indicators to Watch for Altseason
Altseason refers to a period in the cryptocurrency market when altcoins outperform Bitcoin in terms of price growth. Identifying when altseason is approaching can be crucial for traders and investors looking to maximize their returns. Below are the key indicators to watch for altseason:
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1. Bitcoin Dominance (BTC.D)
What it is: Bitcoin dominance measures Bitcoin’s market capitalization as a percentage of the total cryptocurrency market cap.
How it relates to altseason:
Decreasing BTC.D: A decline in Bitcoin dominance signals that capital is flowing out of Bitcoin and into altcoins, which typically precedes or coincides with altseason.
Increasing BTC.D: An increase in Bitcoin dominance suggests Bitcoin is outperforming altcoins, indicating either a Bitcoin-led bull market or a bear market for altcoins.
Threshold: Watch for BTC.D to fall below key support levels (e.g., 40-45%) to confirm that altcoins are gaining momentum.
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2. Altcoin Market Cap (TOTAL2)
What it is: TOTAL2 represents the total market capitalization of all altcoins, excluding Bitcoin.
How it relates to altseason:
A significant increase in TOTAL2 (altcoin market cap) without a corresponding rise in Bitcoin’s market cap suggests that altcoins are gaining momentum.
If TOTAL2 breaks previous resistance levels, it indicates strong bullish sentiment for altcoins.
Indicator to watch: A sustained breakout of TOTAL2 from key resistance levels, signaling the start of a broader altcoin rally.
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3. Ethereum's Performance (ETH)
What it is: Ethereum’s price and its market performance often act as a bellwether for altseason, given its dominance in the smart contract ecosystem, DeFi, and NFTs.
How it relates to altseason:
Ethereum is typically the first altcoin to rise when altseason begins. A strong recovery or bull run in Ethereum often leads other altcoins, especially those built on Ethereum’s platform.
Ethereum’s market dominance can also give insight into the strength of altcoins in general. If Ethereum's market cap rises significantly while Bitcoin's remains flat, it’s a clear indicator of altcoin strength.
Indicator to watch: Look for ETH/BTC ratio growth (Ethereum outperforming Bitcoin) and a sharp increase in Ethereum's price, especially after major upgrades like Ethereum 2.0.
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4. Altcoin Trading Volume
What it is: Trading volume refers to the total number of a cryptocurrency's coins or tokens traded within a given period.
How it relates to altseason:
Increasing volume in altcoins: A surge in altcoin trading volume typically signals increased market interest and investor confidence, which is a hallmark of altseason.
Volume divergence: If altcoins start showing higher volume growth than Bitcoin, it may be an early sign of an impending altseason.
Indicator to watch: A sharp rise in altcoin trading volumes, especially in smaller-cap altcoins, often signals that the altseason is gaining traction.
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5. Bitcoin's Price Stabilization or Correction
What it is: The price action of Bitcoin can influence the entire market. When Bitcoin stabilizes or undergoes a mild correction, it can free up capital for altcoins to flourish.
How it relates to altseason:
Bitcoin consolidation: When Bitcoin’s price stabilizes after a significant run-up, investors may start to rotate profits into altcoins, triggering an altseason.
Bitcoin correction: A sharp drop in Bitcoin’s price can lead to a short-term sell-off in altcoins, but it also often results in altcoins becoming more attractive due to their lower market caps.
Indicator to watch: A period of Bitcoin price consolidation or correction followed by renewed altcoin rally signals the onset of altseason.
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6. The Altcoin to Bitcoin Ratio (Alt/BTC Pairs)
What it is: Alt/BTC pairs measure the performance of altcoins relative to Bitcoin. When these pairs rise, it indicates that altcoins are outperforming Bitcoin.
How it relates to altseason:
Rising alt/BTC pairs: A broad upward trend in altcoin to Bitcoin trading pairs signals that altcoins are gaining value relative to Bitcoin, which is a classic sign of altseason.
Rotations between altcoins: If a wide range of altcoins starts to outperform Bitcoin, it’s likely a sign that the altcoin market is in a strong growth phase.
Indicator to watch: A sustained rise in multiple altcoin/BTC pairs (e.g., ETH/BTC, SOL/BTC) indicates that altcoins are in the midst of a market rally.
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7. New Altcoin Projects and ICO/IDO Activity
What it is: Initial Coin Offerings (ICOs) and Initial DEX Offerings (IDOs) are methods by which new cryptocurrencies are introduced to the market.
How it relates to altseason:
Increased ICO/IDO activity: An influx of new projects launching in the market can drive a speculative wave that boosts altcoin prices.
Excitement around new narratives: The launch of innovative altcoins, especially those based on emerging trends (e.g., Web3, AI, or metaverse), can spark investor enthusiasm and lead to an altseason.
Indicator to watch: A sharp increase in ICO/IDO fundraising and new project launches can signal a shift toward altcoin speculation.
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8. Positive News and Partnerships for Altcoins
What it is: Major developments, technological upgrades, partnerships, or institutional adoption of altcoins can greatly impact their value.
How it relates to altseason:
Partnerships and adoption: When major companies or financial institutions adopt or invest in altcoins (like Chainlink, Solana, or Polkadot), it generates positive sentiment that can trigger broader altcoin rallies.
DeFi and NFT Growth: Continued growth in decentralized finance (DeFi) and NFTs, particularly on platforms like Ethereum, can result in altseason as more projects gain traction.
Indicator to watch: Look for major news that boosts the adoption or credibility of key altcoins, including institutional partnerships, technological breakthroughs, or adoption by large organizations.
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9. Relative Strength Index (RSI) of Altcoins
What it is: RSI is a technical indicator used to measure the speed and change of price movements. An RSI above 70 indicates that an asset is overbought, while below 30 signals it is oversold.
How it relates to altseason:
Increasing RSI for altcoins: If multiple altcoins start entering the overbought zone (RSI > 70) without corrections, it indicates strong bullish momentum, often signaling altseason.
Divergence from Bitcoin: If altcoins experience a rise in RSI while Bitcoin’s RSI remains stable, it further supports the possibility of an altcoin-led market rally.
Indicator to watch: A broad increase in RSI values across altcoins, particularly those with strong use cases, is often a bullish signal for altseason.
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10. Decreased Gas Fees and Network Congestion (For Ethereum and Similar Networks)
What it is: Gas fees are transaction costs on networks like Ethereum. High gas fees often indicate congestion on the network, while low fees can signal increased scalability.
How it relates to altseason:
Decreased gas fees: When Ethereum’s gas fees decrease or its scalability improves (due to upgrades like Ethereum 2.0 or Layer-2 solutions), it opens the door for more DeFi and dApp activity, driving altcoin performance.
Scalability of other networks: Similarly, improvements in the scalability of other blockchain networks (like Solana, Polkadot, or Avalanche) can stimulate altseason.
Indicator to watch: A drop in Ethereum gas fees or improved scalability solutions can indicate that Ethereum and its altcoin ecosystem are primed for growth.
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Conclusion:
Altseason typically arises when there’s a combination of favorable conditions, such as a decrease in Bitcoin dominance, growth in Ethereum and other leading altcoins, increased market participation, and positive news across the altcoin sector. By tracking the above indicators, investors can gain a better sense of when altseason may begin, allowing them to position themselves for potential profit.
$BTC
(@Cryptosmith2✍️)
Top 5 altcoins from the 2021 bull run set to explode this cycle
Table of Contents
Market Musing-g
To
Top 5 altcoins from the 2021 bull run set to explode this cycle
Table of Contents
Market Musing-g
Top 5 altcoins from the 2021 bull run set to explode this cycle
able of ContentsBitcoin faces resistance enroute to its $100,000 target, with a likelihood of consolidation. This has sparked a fresh interest in the altcoin market. In 2021, altcoins delivered massive gains to traders when Bitcoin paused its rally, and a similar scenario may be unfolding this cycle.
With traders anticipating another potential breakout, we analyse key altcoins that could rally once more if Bitcoin takes a breather. This deep dive explores five altcoins from the 2021 bull run that are showing signs of gearing up for an explosive move this cycle.
Table of Contents
Join us in showcasing the cryptocurrency revolution, one newsletter at a time. Subscribe now to get daily news and market updates right to your inbox, along with our millions of other subscribers (that’s right, millions love us!) — what are you waiting for?
Bitcoin dominance dwindles, altcoin gains likely
$BTC s dominance peaked at 61.53%, the highest level since 2021, on November 18. Since then, dominance has dwindled, down to 58.97% on Tuesday, November 26, 2024.
A decline in Bitcoin dominance typically paves the way for capital rotation into altcoins and a likely comeback in the altcoin season, where at least 75% of the tokens outperform Bitcoin in a 90-day timeframe.
During the 2021 bull run, Bitcoin dominance dropped to 40%, and altcoins started rallying, yielding nearly double-digit gains for traders during the cycle. A similar occurrence could push altcoin prices higher during this bull run.
Bitcoin dominance % | Source: TradingView
You might also like:
Is it altcoin season?
The altcoin season index on Blockchaincenter.net shows a steady climb in the scale that measures whether it is “alt season.” When 75% of the top 50 altcoins outperform Bitcoin in a 90-day timeframe, it confirms an alt season, excluding stablecoins like Tether, DAI, and asset-backed tokens like WBTC, stETH, and cLINK.
The chart shows an increase in the index, up from 6 on November 5 to 57 at the time of writing. Once the metric touches 75, it marks an “altcoin month.” When this occurs in the 90-day timeframe, it is altcoin season.
While it isn’t altcoin season yet, this shows steady progress towards the same, and traders can begin preparing by adding relevant altcoin tokens to their portfolio to take profits in the coming weeks.
Top 5 altcoins from the 2021 bull run set to explode this cycle
Table of Contents
Market Musing-g
To
Top 5 altcoins from the 2021 bull run set to explode this cycle
Table of Contents
Market Musing-g
Top 5 altcoins from the 2021 bull run set to explode this cycle
able of ContentsBitcoin faces resistance enroute to its $100,000 target, with a likelihood of consolidation. This has sparked a fresh interest in the altcoin market. In 2021, altcoins delivered massive gains to traders when Bitcoin paused its rally, and a similar scenario may be unfolding this cycle.
With traders anticipating another potential breakout, we analyse key altcoins that could rally once more if Bitcoin takes a breather. This deep dive explores five altcoins from the 2021 bull run that are showing signs of gearing up for an explosive move this cycle.
Table of Contents
Join us in showcasing the cryptocurrency revolution, one newsletter at a time. Subscribe now to get daily news and market updates right to your inbox, along with our millions of other subscribers (that’s right, millions love us!) — what are you waiting for?
Bitcoin dominance dwindles, altcoin gains likely
$BTC s dominance peaked at 61.53%, the highest level since 2021, on November 18. Since then, dominance has dwindled, down to 58.97% on Tuesday, November 26, 2024.
A decline in Bitcoin dominance typically paves the way for capital rotation into altcoins and a likely comeback in the altcoin season, where at least 75% of the tokens outperform Bitcoin in a 90-day timeframe.
During the 2021 bull run, Bitcoin dominance dropped to 40%, and altcoins started rallying, yielding nearly double-digit gains for traders during the cycle. A similar occurrence could push altcoin prices higher during this bull run.
Bitcoin dominance % | Source: TradingView
You might also like:
Is it altcoin season?
The altcoin season index on Blockchaincenter.net shows a steady climb in the scale that measures whether it is “alt season.” When 75% of the top 50 altcoins outperform Bitcoin in a 90-day timeframe, it confirms an alt season, excluding stablecoins like Tether, DAI, and asset-backed tokens like WBTC, stETH, and cLINK.
The chart shows an increase in the index, up from 6 on November 5 to 57 at the time of writing. Once the metric touches 75, it marks an “altcoin month.” When this occurs in the 90-day timeframe, it is altcoin season.
While it isn’t altcoin season yet, this shows steady progress towards the same, and traders can begin preparing by adding relevant altcoin tokens to their portfolio to take profits in the coming weeks.
Top 5 altcoins from the 2021 bull run set to explode this cycle
Table of Contents
Market Musing-g
To
Top 5 altcoins from the 2021 bull run set to explode this cycle
Table of Contents
Market Musing-g
Top 5 altcoins from the 2021 bull run set to explode this cycle
able of ContentsBitcoin faces resistance enroute to its $100,000 target, with a likelihood of consolidation. This has sparked a fresh interest in the altcoin market. In 2021, altcoins delivered massive gains to traders when Bitcoin paused its rally, and a similar scenario may be unfolding this cycle.
With traders anticipating another potential breakout, we analyse key altcoins that could rally once more if Bitcoin takes a breather. This deep dive explores five altcoins from the 2021 bull run that are showing signs of gearing up for an explosive move this cycle.
Table of Contents
Join us in showcasing the cryptocurrency revolution, one newsletter at a time. Subscribe now to get daily news and market updates right to your inbox, along with our millions of other subscribers (that’s right, millions love us!) — what are you waiting for?
Bitcoin dominance dwindles, altcoin gains likely
$BTC s dominance peaked at 61.53%, the highest level since 2021, on November 18. Since then, dominance has dwindled, down to 58.97% on Tuesday, November 26, 2024.
A decline in Bitcoin dominance typically paves the way for capital rotation into altcoins and a likely comeback in the altcoin season, where at least 75% of the tokens outperform Bitcoin in a 90-day timeframe.
During the 2021 bull run, Bitcoin dominance dropped to 40%, and altcoins started rallying, yielding nearly double-digit gains for traders during the cycle. A similar occurrence could push altcoin prices higher during this bull run.
Bitcoin dominance % | Source: TradingView
You might also like:
Is it altcoin season?
The altcoin season index on Blockchaincenter.net shows a steady climb in the scale that measures whether it is “alt season.” When 75% of the top 50 altcoins outperform Bitcoin in a 90-day timeframe, it confirms an alt season, excluding stablecoins like Tether, DAI, and asset-backed tokens like WBTC, stETH, and cLINK.
The chart shows an increase in the index, up from 6 on November 5 to 57 at the time of writing. Once the metric touches 75, it marks an “altcoin month.” When this occurs in the 90-day timeframe, it is altcoin season.
While it isn’t altcoin season yet, this shows steady progress towards the same, and traders can begin preparing by adding relevant altcoin tokens to their portfolio to take profits in the coming weeks.
Top 5 altcoins from the 2021 bull run set to explode this cycle
Table of Contents
Market Musing-g
Top 5 altcoins from the 2021 bull run set to explode this cycle
able of ContentsBitcoin faces resistance enroute to its $100,000 target, with a likelihood of consolidation. This has sparked a fresh interest in the altcoin market. In 2021, altcoins delivered massive gains to traders when Bitcoin paused its rally, and a similar scenario may be unfolding this cycle.
With traders anticipating another potential breakout, we analyse key altcoins that could rally once more if Bitcoin takes a breather. This deep dive explores five altcoins from the 2021 bull run that are showing signs of gearing up for an explosive move this cycle.
Table of Contents
Join us in showcasing the cryptocurrency revolution, one newsletter at a time. Subscribe now to get daily news and market updates right to your inbox, along with our millions of other subscribers (that’s right, millions love us!) — what are you waiting for?
Bitcoin dominance dwindles, altcoin gains likely
$BTC s dominance peaked at 61.53%, the highest level since 2021, on November 18. Since then, dominance has dwindled, down to 58.97% on Tuesday, November 26, 2024.
A decline in Bitcoin dominance typically paves the way for capital rotation into altcoins and a likely comeback in the altcoin season, where at least 75% of the tokens outperform Bitcoin in a 90-day timeframe.
During the 2021 bull run, Bitcoin dominance dropped to 40%, and altcoins started rallying, yielding nearly double-digit gains for traders during the cycle. A similar occurrence could push altcoin prices higher during this bull run.
Bitcoin dominance % | Source: TradingView
You might also like:
Is it altcoin season?
The altcoin season index on Blockchaincenter.net shows a steady climb in the scale that measures whether it is “alt season.” When 75% of the top 50 altcoins outperform Bitcoin in a 90-day timeframe, it confirms an alt season, excluding stablecoins like Tether, DAI, and asset-backed tokens like WBTC, stETH, and cLINK.
The chart shows an increase in the index, up from 6 on November 5 to 57 at the time of writing. Once the metric touches 75, it marks an “altcoin month.” When this occurs in the 90-day timeframe, it is altcoin season.
While it isn’t altcoin season yet, this shows steady progress towards the same, and traders can begin preparing by adding relevant altcoin tokens to their portfolio to take profits in the coming weeks.