Recent reports from wealth manager SwissBlock and insights from other analysts conclude that the crypto market is entering the early stages of the Altcoin season.
Bitcoin’s advantage remains high, but experts believe the market situation will change quickly. This article delves into the reasons behind these claims.
Early signs of the Altcoin season appear
Altcoin Vector, SwissBlock’s facility-grade Altcoin Market Report, recently said that the Altcoin season has begun. Their team claims that the market shows clear signs of capital turnover from Bitcoin to other altcoins.
This is not just a speculation. It is supported by two important indicators used by SwissBlock: impulse and structure. Both help track market trends.
The impulse, which measures the percentage of altcoins that exhibit exponential strength, shows a shift. Since June, only 8% of Altcoins have shown negative momentum. Historically, if this number falls between 15-25%, the market bottom forms.
Therefore, SwissBlock believes it is likely that the Altcoin market has bottomed out.
The structure assesses whether the market is in a breakout position. The analysis highlights that Altcoin’s market capitalization (Total2) erupted with a 22% increase. Historical data show that such breakouts often lead to an increase in market capitalization between 67% and 96%.
“We’re in the early stages of the alto season, and our framework says it doesn’t matter if it’s until then. – Altcoin Vector is finished.
Recent reports from Beincrypto reinforce SwissBlock’s conclusions. It notes that despite Bitcoin’s reaching an all-time high, Bitcoin’s dominance fell from 66% to 64%. This shows that altcoins are gaining market share faster than Bitcoin.
The Altcoin Season Index reaches its highest level since February
The index for the Altcoin season is 35, the best since February. According to the index, the official Altcoin season begins when 75% of the top 50 coins outweigh Bitcoin in the last 90 days.
Although the 75 threshold has not yet been reached, the recent surge to 35 is important. This is a major improvement over the past four months, driving an increase in optimism.
Several analysts are growing confidently in this forecast. Famous analyst TechDev believes the Altcoin market has been curtailed for four years and is ready to break out now. Meanwhile, Michael Van de Poppe emphasizes that this is the best time to buy altcoins and earn profits in the next 12-24 months.
Still, Nansen research analyst Nicolai Sondergaard warns that if Altcoin season occurs, it may not resemble previous seasons.
“I think it’s hard to say whether the much-anticipated alto season will actually celebrate us. BTC’s dominance remains high at 64.59%. Token,” Nikolai Sondergaard told Beincrypto.
At the time of this writing, Altcoin’s market capitalization (total of 3) reached $933 billion, an increase of more than 14% since the beginning of July.
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