Over the last 90 days, 15 of the top 50 altcoin projects have outperformed Bitcoin (BTC). This has created strong speculation and expectations among investors that altcoin season is around the corner. However, it will become clear in the coming weeks whether altcoins can surpass Bitcoin. The developments that attract investors’ attention become even more important with this week’s market movements.
Altcoin Season Index Rising
According to data published by Blockchaincenter, the Altcoin Season Index reached the 31 level. This level was below 25 a few days ago, which suggests that altcoins are performing better compared to Bitcoin. However, for a real altcoin season to begin, this index must rise to the level of 75. This means that at least 75% of the top 50 cryptocurrencies, excluding Bitcoin, must outperform BTC. At this point, it is essential for investors to follow these developments carefully.
Featured Altcoins
Currently, 15 cryptocurrencies have achieved this success, leaving BTC behind. This means that 30% of the total altcoins managed to surpass Bitcoin. Here are some altcoins leading this rise:
- Sui (SUI): It attracts attention with its innovative technology.
- Fantom (FTM): Stands out with its fast transaction confirmation times.
- Uniswap (UNI): A leader in the field of decentralized exchange.
- Dogecoin (DOGE): It attracts the attention of investors with its social media effect.
While altcoins have been lagging behind Bitcoin in recent weeks, this rising Altcoin Season Index shows that a new season is at the door. However, there are also doubts about the sustainability of this situation.
Bitcoin Domination and Altcoin Season
Bitcoin’s market dominance plays a critical role in the timing of the start of altcoin season. After the last US presidential election, the BTC price reached a new peak, exceeding $ 76,000 and increasing its market dominance to 60.61%. This shows that Bitcoin is still determining the market direction. For altcoin season to be confirmed, Bitcoin’s dominance rate must decline. If Bitcoin’s dominance does not decline, it will be difficult for altcoins to rise.
Market Cap and Resistance Levels
Despite Bitcoin’s strong dominance, the market cap of altcoins (TOTAL2) has managed to break through a significant resistance level. TOTAL2 represents the total market value of the top 100 cryptocurrencies, excluding Bitcoin, and this chart has broken out of the falling triangle formation. The falling triangle formation is generally considered a harbinger of a downward trend. However, this breakout may indicate that altcoin season is almost here. If the TOTAL2 value rises above $1 trillion, a positive outlook for altcoins can be confirmed.
Recommendations for Investors
It is important for investors to act by taking this data into consideration. A drop below the support line could cause altcoins to weaken again against Bitcoin. Therefore, investors need to be aware of the risks and research projects in detail before investing. Additionally, constantly monitoring market conditions and updating strategies according to current developments is the key to being a successful investor.
Conclusion
In summary, although there are strong signs that altcoin season is approaching, investors need to be careful and closely monitor changes in Bitcoin’s dominance. Market dynamics are constantly changing, and investors who can quickly adapt to these changes will be more advantageous in making profits.
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