Synchronized 5 Sub-Season Index Indicates Possible Revival for Altcoins?
Ready for Altcoin Season?
Guess what? Some crypto experts are hype about the upcoming altcoin season! Trader and angel investor "Cyclop", with a whopping 578k followers, recently declared, "I've been in crypto for seven years, and I've never seen a clearer setup like this."
Here are the 4 key signs that have these analysts jumping for joy:
- Bitcoin's Peak: The price of Bitcoin is nearing all-time highs, which historically has hinted at an altcoin rally.
- Retail Investors Taking a Backseat: At the moment, retail investor interest is at rock-bottom. Similar situations have preceded big altcoin booms.
- ETH/BTC Break: The ratio of Ethereum to Bitcoin has broken a three-year downtrend, another sign that altcoins might be on the rise.
- Altcoin Index Moving Up: The altcoin index is climbing out of its lows, a hopeful indication that altcoins could soon rule the roost.
"Each of these factors has typically tipped off an alt season," said Cyclop, "I can hardly believe it, but I sense the altcoin season is finally starting."
Is Altcoin Season Here?
In case you're wondering, the Bitcoin conversation has shifted. It's no longer just a speculative asset but a geopolitical safe haven for countries battling inflation, a macro hedge supported by corporations, and a store of value.
Altcoins, especially big layer-1 projects like Ethereum and Solana, are no longer simply Bitcoin alternatives but strong contenders as technology platforms.
Moreover, rising global liquidity, the growth of stablecoin supply, positive signals from the altseason index, and low retail investor interest have all been precursors for massive altcoin rallies in the past.
According to CoinMarketCap's Altseason Index, we're currently in "Bitcoin season" (score of 26). However, the index dipped to 15 at the beginning of this month when Ethereum made its move. CryptoRank's Altcoin Index tells a similar story: it was at 15 mid-week last week and has since risen to 27.
The ETH/BTC ratio has also rebounded from its 5-year low of 0.018 to 0.025 over the last few weeks. While Bitcoin dominance has decreased from 65.4% to 62% in just one week, as per TradingView data.
Golden Cross in the Altcoin World
Web3 fund manager Cas Abbé pointed out the daily golden cross signal in the altcoin market cap chart on May 14th. A similar signal in October 2021 was followed by a mini altcoin season. However, Abbeé warned that there could be a brief period of stagnation before the big rally.
On the other hand, analyst 'Ash Crypto' highlighted Ethereum's 30% gain and Bitcoin's under 3% gain in the last week, suggesting that altseason might be just around the corner.
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Investing in web3-based finance could be a profitable move during the upcoming altcoin season. The current conditions, such as Bitcoin's peak, retail investors taking a backseat, Ethereum's rebound against Bitcoin, and positive signals from altseason indices, all point towards a potential altcoin rally.
