There are reasons to believe that the altcoin season is imminent based on recent bitcoin price action. Altcoin season is known to be a period where other crypto tokens begins to outperform the flagship crypto token.
bitcoin to cool down for altcoin season
crypto analyst Rekt Capital stated in an X (formerly Twitter) mail that bitcoin only has one last pre-halving pullback before making a parabolic move after the halving. The cryptanalyst Sjuul also highlighted in a x publication how the funding rate is “slightly high” for bitcoin right now, something that hints that a correction was on the horizon.
With bitcoin-will-hit-100k-this-june-kiyosaki/” rel=”nofollow”>bitcoin likely to face a bitcoin-hit-turbulence-40-correction-eyed-before-reaching-150000-analyst-warns/” rel=”nofollow”>significant correction, this presents the perfect opportunity for altcoins to do their own business. ethereum, the second-largest crypto token by market cap, looks set to lead the pack. ethereum-ico-whale-cashes-out-price-3000-bearish/” rel=”nofollow”>reaching $3,000 for the first time in almost two years. Meanwhile, some analysts have noted indicators confirming that Altcoin season is not far away.
The cryptanalyst crypto Prof pointed out that the Gaussian channel in the crypto-wyckoff-method/” rel=”nofollow”>Altcoin chart It has turned green after almost 4 years. Furthermore, these altcoins are said to have broken through the previous resistance from the last weekly close. crypto Prof further claimed that the same thing happened in 2016 and 2020, the period in which the Altcoin bull run began.
Stockmonkey Lizards, another crypto analyst, too mentioned on its X platform that the altcoin is close. In the chart attached to his post, he highlighted how the market capitalization of altcoins was going to reach $10 trillion from its current market capitalization of almost $900 billion.
Investors increase their appetite for risk
bitcoin-bull-market-glassnode/” rel=”nofollow”>Glassnode on-chain intelligence platform noted in a recent report that its Altseason Momentum indicator has shown “growing investor appetite to move capital further up the risk curve.” This suggests that cryptocurrency investors are more willing to invest a significant amount of their capital in altcoins in anticipation of higher returns.
Interestingly, this altcoin indicator is said to have signaled positive momentum since October 2023 before cooling briefly during the bitcoin-etf-approval-sell-the-news-event/” rel=”nofollow”>news sale event what happened after the bitcoin-etfs-approved-by-us-sec/” rel=”nofollow”>bitcoin ETF approval spot. However, the indicator once again indicates that this positive momentum was reactivated on February 4.
Glassnode further revealed that while bitcoin's dominance remains significant, there are signs that capital is rotating to other ecosystems such as ethereum, Solana, Polkadot, and Cosmos.
Data from the Blockchain Center also shows that the market is approaching an altcoin season. The altcoin season index currently stands at 61%, with an increase to 75% still needed before the altcoin season can be said to be in full swing.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/02/Is-altcoin-season-approaching-This-is-what-Bitcoin39s-performance-shows" alt="Tradingview.com bitcoin Dominance Chart (Altcoins)” width=”3286″ height=”1530″ loading=”lazy”/>
btc dominance rises above 53% | Source: Market Cap btc Dominance on Tradingview.com
Featured image from Bitcoinist, chart from Tradingview.com
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