Altcoin
Altcoin Season Indicator: Are the Signs Pointing to an Altcoin Surge?
- Strong inflows into Bitcoin ETFs could trigger the next upward price movement.
- Altcoins may follow BTC’s gains, but may struggle to outperform the king anytime soon.
Bitcoin [BTC] he may soon free himself from his torpor. Earlier this week, the price was at $67,700 and the lack of trading volume and speculative interest suggested that BTC was not ready for a strong uptrend.
Source: Distant investors
The situation has started to change in the last 24 hours. Data from Farside Investors showed that Bitcoin exchange-traded funds saw an inflow of $886 million on Tuesday, June 4.
This level of buying could spark a shift and push speculators and investors into action.
Will Increased Attention to Bitcoin Cause Altcoin Prices to Explode? Or will altcoin season have to wait? Here are the results of the altcoin seasonal indicator.
How close are we to altcoin season?
Source: Blockchain Center
The seasonal altcoin index showed a value of 31, according to data from Blockchain Center. Over the last six months the index has seen a downward trend from 80 to 31.
A year ago, the index showed a strong BTC season.
However, this was during the deepest period of the bear market, when Bitcoin was trading at $25,000 and alternatives were in a consolidation phase or long-term downtrend.
As of this writing, although alts may perform well due to Bitcoin’s bullish fervor, only a select few alts may outperform Bitcoin.
If the altcoin season indicator were to rise above 75, it would be a sign of strong upside in the altcoin ecosystem.
Given that there are many more alternatives at this time than in previous cycles, gains during an altseason may still be concentrated in a portion of the alternatives rather than rallies across the entire market.
Bitcoin Dominance limited in range and parallels with the past
Source: BTC.D on TradingView
The Bitcoin Dominance chart represents the market capitalization of BTC as a percentage of the total cryptocurrency market capitalization. Since April the parameter has been in a range between 53.9% and 56.3%.
At the time of this writing, the stock was bouncing off the range lows. An increase in BTC.D means that BTC is growing faster than the rest of the market, Ethereum [ETH] included.
Is your portfolio green? Check the Bitcoin Profit Calculator
In 2021, from January to June, BTC’s dominance dropped from 72% to 40.4%. In this time frame, the market capitalization of altcoins (excluding ETH) increased from $122 billion to $934 billion.
Therefore, for a real altcoin season to begin, a strong downtrend on the BTC.D chart is needed.