- Glassnode founders believe that an altcoin season could happen soon.
However, BTC’s dominance has remained high amid ETH’s worrying underperformance
As a seasoned analyst with years of experience navigating the volatile and unpredictable world of cryptocurrencies, I must admit that predicting market trends can be as challenging as calling the weather. However, based on the insights shared by Glassnode’s founders and other respected analysts in the community, there seems to be a growing sentiment that an altcoin season could be on the horizon.
As suggested by Glassnode’s co-founders, Jan Happel and Yann Allemann, we might be on the verge of an extended period where altcoins outperform Bitcoin. The experts reason that the previous two surges in Bitcoin’s price to around $70,000 did not trigger a correspondingly stronger rally among altcoins.
Yet, the upcoming surge might set a fresh all-time high for Bitcoin, partially fueled by a robust “altcoin current,” as suggested by Happel and Allemann. They support this prediction using their exclusive Bitcoin-Altcoin cycle indicator.
Could it be that Altcoin Season is on the horizon? If so, the subsequent rise in Bitcoin ($BTC) could surpass its previous record set in March, driven by a robust wave of Altcoins.
It’s important to note that the given metric compares Bitcoin with other cryptocurrencies (Altcoins), and the last instance of a significant surge in Altcoins was observed in March. Currently, the metric is approaching the 50-neutral level, which, as suggested by Happel and Allemann, could signal a substantial increase for the market’s Altcoins.
Is the altcoin season closer?
Needless to say, this observation spurred more analyses from the rest of the crypto community.
A well-known crypto expert and investor, TechDev_12, shared a similar perspective, pointing out that Dogecoin‘s [DOGE] recent price movement resembles its pattern from 2021, preceding the significant surge it experienced during that period. The analyst drew attention to this similarity, suggesting that DOGE may follow a comparable trajectory in the current cycle.
Some experts assess the vitality and power of the altcoin market by examining Dogecoin (DOGE) and Ethereum (ETH). Should DOGE’s pattern recur and the relationship persist, it might signal an ‘altcoin season’.
However, so far, the numerous altcoin season calls made in the past have been invalidated. For those using the ETH/BTC ratio to gauge the sector, the approval of Spot ETH ETFs was viewed as a potential trigger.
Indeed, Glassnode’s creators had previously predicted an altcoin boom in July using similar indicators. However, contrary to their prediction, the Ethereum-to-Bitcoin ratio (a measure of ETH‘s value compared to BTC) has plunged to record lows for the year. During this timeframe, no altcoin season has materialized.
This implies that Bitcoin performed better than Ethereum, and its growing strength may dampen the general forecast for the altcoin market. This is particularly true when considering the alt market based on Ethereum’s performance.
Currently, based on the Altcoin Season Index from Blockchain Centre, it appears that we’re still firmly in Bitcoin’s dominance phase.
In September, there was a slight increase, but not as significant as what occurred from late 2023 to early 2024 for altcoins. It’s uncertain if this growth will continue upward, suggesting a lasting altcoin boom. The future course of the trend is yet to be determined.
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2024-09-14 14:15