Bitcoin
Top Coins Face Challenges as Bitcoin Season Emerges
The total market capitalization of altcoins, excluding Bitcoin and Ethereum, has faced significant resistance, contributing to the recent declines. However, according to several analysts, despite the short-term challenges, macro trends suggest that if the market follows a regular structural pattern, altcoins could see growth advance.
The Altseason Index and Bitcoin Dominance Trends are essential tools for understanding market movements. Sharp drops in Bitcoin dominance often indicate the start of a new season. However, the altcoin season index recently reached 18, indicating that we are still in the accumulation zone.
Providing a little context, to know if we are in peak season, we can look at the performance of altcoins in relation to Bitcoin. The most common way to track this is by examining Bitcoin dominance; Sharp drops in dominance signal a new season.
To make this more practical, there is an indicator called Altseason Index, created by blockchaincenter.net. This index evaluates the price variation of the 50 largest currencies by market value. If 75% of these coins outperformed Bitcoin over a 90-day period means we are in a peak season. The Altcoin Season Index indicates that the altcoin season may have already reached a local peak, with the market returning to Bitcoin season in the near term.
The same calculation is made for periods of one month and one year. The scale ranges from zero to one hundred, where 100% means that all of the top 50 coins perform better than Bitcoin. Currently, we can see that we are not even approaching a peak season. The level is currently at 18, clearly indicating that we are not yet in peak season. However, historical trends suggest it fell below 10 before a bull run. In November 2023, the index reached 4.
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