Over the last 90 days, 15 of the top 50 altcoin projects have outperformed Bitcoin (BTC). This has led to speculation among investors that altcoin season is approaching. It will become clear in the coming weeks whether the performance of altcoins will surpass Bitcoin. Investors’ eyes are on this week’s new developments. Here are the details…
Altcoin Season Index Rises, But Bitcoin Dominance Continues
According to data published by Blockchaincenter, the Altcoin Season Index reached the 31 level. A few days ago this level was below 25. However, for a real altcoin season to begin, this index must rise to the level of 75. This means that 75 percent of the top 50 cryptocurrencies, excluding Bitcoin, should outperform BTC. So will this happen?
Currently, 15 cryptocurrencies have achieved this success, meaning 30 percent of altcoins have surpassed Bitcoin. Sui (SUI), Fantom (FTM), Uniswap (UNI) and Dogecoin (DOGE) are among the altcoins leading this rise. As we reported as Kriptokoin.com, while altcoins have been lagging behind Bitcoin in recent weeks, this rising index shows that the altcoin season may be at the door.
Will Bitcoin Dominance Delay Altcoin Season?
Bitcoin’s market dominance plays a critical role in the timing of the start of altcoin season. Following the recent US presidential election, the BTC price reached a new peak, exceeding $76,000. This rise brought Bitcoin’s market dominance to 60.61%.
For altcoin season to be confirmed, Bitcoin’s dominance rate must decrease. Although the current chart indicates that the altcoin season is approaching, Bitcoin is still determining the market direction. Therefore, it is important for investors to closely follow changes in Bitcoin dominance.
Market Cap Breaks Key Resistance
Despite Bitcoin’s strong dominance, the market cap of altcoins (TOTAL2) has broken an important resistance level. TOTAL2 represents the total market cap of the top 100 cryptocurrencies, excluding Bitcoin. However, this chart broke 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 the altcoin season has almost begun. If the TOTAL2 value rises above $1 trillion, a positive outlook for altcoins can be confirmed. However, a drop below the support line could cause altcoins to weaken against Bitcoin again. Still, despite all this data, as we reported as Kriptokoin.com, it is important for investors to be aware of the risks and research the projects in detail before investing.
