The cryptocurrency market is witnessing a significant upheaval following Trump’s victory in the US election. Bitcoin (BTC) has shattered its previous all-time high, achieving an impressive value of $89,956. This surge has captured the attention of investors globally. However, with Bitcoin’s dominance nearing its apex post-halving, attention is now shifting towards smaller altcoins. Prominent crypto analyst Cryptojack has identified a recurring pattern whereby altcoins take turns leading the market, suggesting the imminent arrival of an altcoin season.
Altcoin Season Nearing Again?
Cryptojack’s analysis uncovers a cyclic pattern between the dominance of Bitcoin and subsequent altcoin rallies. He highlights the intervals between Bitcoin’s peak performances and the ensuing altcoin surges, suggesting that altcoin seasons tend to follow significant declines in Bitcoin dominance. Historical data reveals that after Bitcoin’s price ascends over approximately 1,065 days, the market often transitions into a phase where altcoins shine brighter. Past cycles, particularly in 2018 and 2022, exhibited this trend after a notable decline lasting around 330 to 340 days.
Currently, we are nearing the conclusion of another Bitcoin dominance phase, which has persisted for 1,066 days. This hints at the possibility of a forthcoming “altcoin season.” This potential shift is particularly exciting for investors seeking diversification beyond Bitcoin, as they anticipate the beginning of an alt season.
True Altcoin Season Is Far Away
Conversely, renowned crypto analyst Miles Deutscher posits that a genuine altcoin season is still distant. He describes the present market conditions as merely a “warm-up” for a more extensive period of altcoin growth. Deutscher employs the Altcoin Season Index to assess altcoin performance in comparison to Bitcoin. According to him, the current index stands at 33, which falls significantly short of the 75 mark that typically heralds a true altcoin season.
Deutscher’s perspective aligns with historical trends, where Bitcoin usually spearheads market movements before altcoins experience substantial growth. While predicting precise timing remains challenging, the 75-point threshold on the Altcoin Season Index serves as a critical benchmark for many analysts.
