Altcoin
Altseason moves further away but there is a warning
Cryptocurrency markets may be witnessing an “altseason,” but traders and investors should not hold their breath for now, at least for now, as the ETH/BTC trading pair remains bearish.
Altcoin season is not yet on the horizon
Altseason, short for altcoin season, is the flow of money or new capital coming from the Bitcoin and Ethereum markets altcoins. As a result, the dominance of Bitcoin as we know it would decline while that of altcoins would increase.
During this period, altcoins undergo significant price increases, so much so that they outperform Bitcoin in terms of value acquired. This phenomenon often accompanies an increase in trading volume and overall market activity, driven by growing investor interest in exploring alternative investment opportunities beyond Bitcoin.
Based on BlockchainCenter’s altseason indicator, the chance of markets returning to Bitcoin season is greater than heading into an altcoin season.
Seasonal Altcoin Index
Analysts also speculate the start of an altcoin season when the ETH/BTC trading pair turns bullish. The chart below shows a bearish outlook. Until this pairing is bullish and the price confirms a reversal, a altcoin season
it will remain the opium for now.
For a confirmed uptrend, Bitcoin price must return to the supply zone, which extends from $0.0579 to $0.0601. A stable close above the midline (average threshold) of this order block at $0.0590 would confirm a correction.
For skeptics and risk-averse traders, waiting for a change in market structure above $0.0611 would be a good confirmation of the dawn of a bullish phase. A higher high of the Relative Strength Index (RSI) would also confirm this assumption. This momentum indicator has posted higher highs since March as Bitcoin dominance continues to abound.
As it stands, the odds are in favor of bearishness for the ETH/BTC trading pair. The RSI teases with a pending sell signal to execute once it crosses the signal line (yellow band).
ETH/BTC daily chart
Read also: Bitcoin whales return as markets adapt to new phase of scarcity
Lockridge transitioned from a career in molecular and cellular biology to pursue his interest in the chaos of financial markets and cryptocurrencies. He is a cryptocurrency journalist and market analyst with over 3,000 articles to his name. By conducting on-chain analysis, analyzing market trigger events, and publishing Op-Ed articles, he finds gratification in diving deep into the crypto space, gaining significant knowledge and experience. In addition to ATZCrypto, Blockster, and InsideBitcoins, Lockridge’s work can also be found on FXStreet.com. Outside of work, you can find Lockridge watching movies or riding horses.