According to analysts, smart traders often use these three indicators to determine when an altcoin season might begin.
How to understand altcoin season?
According to the analyst views, which we also included in the news of Kriptokoin.com, it is widely accepted that the fate of the crypto money market largely depends on the performance of Bitcoin (BTC). This creates such times for crypto traders who prefer to invest in altcoins.
When BTC price drops, altcoins tend to follow. But once a bottoming process begins, altcoin projects tend to rise in Bitcoin’s consolidation phases, often leading to a call for alt season. While Bitcoin’s current drop below $30,000 suggests it’s a little early to call for an alt season, analysts are still drawing a variety of divergent results pointing to an alt season.
ETH/BTC price action could be an early indicator
The idea of the possibility of an altcoin season using the ETH/BTC chart as the indicator shows ETH/BTC’s 2016-2017 performance in the pair in 2021-2022. It’s claimed by analyst alias PlanDeFi, who posted the chart below comparing it to performance.
ETH/BTC in 2016/2017 vs. ETH/BTC in 2021/2022 / Source: Twitter Analyst PlanDeFi makes the following statement regarding the chart:
Very similar, right? Accumulation>Breakout>Ascending Channel>Breakout. The market is bigger now – it just takes longer.
According to the projection provided, its next sub-season may begin after early July and has the potential to extend into the end of 2022.
A 2017 fractal indicates that an alt season is imminent
Looking at the altcoin market cap history and posting the chart below, El_Crypto_Prof provides further evidence that the market may be approaching a tipping point.
Altcoin market cap / Source: Twitter El_Crypto_Prof comments on the chart as follows:
When it comes to altcoins, I can see the following scenario playing out. There are a lot of similarities with the previous cycle. The RSI also looks incredible. The next wave will leave many behind.
“The market is definitely in Bitcoin Season”
While fractals are pleasing to the eye and give hope to disappointed traders, many of them don’t materialize and are not the right analysis methods to rely on when trading. The Altseason Indicator provides a more metrics-based method for predicting when the market is in ‘Bitcoin season’ and ‘alt season’.
Alt season indicator / Source: Blockchain Center According to the chart above, it seems unlikely that alt-season will happen anytime soon, as the metric currently provides data of 24, while an alt-season The level required to indicate this is 75.
According to the past performance of the index, it takes at least two to three months to reach the sub-season level from the region, which indicates that it is Bitcoin season. According to the indicator, current forecasts suggest that an altcoin season may not begin until August or September 2022.
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