With Bitcoin correcting on the charts, dropping nearly 6% in a few days, the bullish sentiment has shifted to altcoins. Most of the altcoins with Bitcoin pairs appeared to be on the ground, at press time. What this could also mean is that an altcoin season could still return. Here are the signs that seem to point towards the aforementioned possibility:
Is Bitcoin Losing Ground?
Bitcoin posted some minor corrections after a rather impressive rally for most of this month. Now the larger market might be of the opinion that Bitcoin noticing minor losses won’t make a big difference as long as it holds the $ 42k level.
That might be true, but such a “bearish” move could also have a bullish impact on the altcoin market.
Additionally, Bitcoin’s dominance is a key driver of any alt rally or alt season. At the time of writing this report, it stood at 44.36, falling to a level not seen since June 10. In particular, these levels were also observed in June 2018.
Such a drastic drop in Bitcoin’s dominance could point to the other side of the rainbow: the chances of an altcoin season. Historically, a steep downward slope in BTC’s dominance has been indicative of its emergence.
Furthermore, the total market capitalization of altcoins recovered around 45% in the month of August. It also hit a local high of 1.15 trillion on August 16, having seen only a small drop since then.
These altcoins stole the show
In a bull market, high spikes are not a big deal. In fact, many altcoins highlight massive gains and then lose their rallies and dominance quite early. However, when large-cap alt’s show good gains, the possibility of an alternate rally increases.
This month was a pretty nice time for some of the best alts on the market. While Cardano got a bit closer to its ATH, XRP posted windfall gains. Even Polkadot noticed a sustained rebound. Additionally, altcoins such as Solana, Terra, and Axie Infinity made headlines and posted weekly gains of 77%, 91%, and 5%.
Some indicators of an alt season include money inflows from Bitcoin to Ethereum, Ethereum outperforming Bitcoin, new entrants entering the alt market, large cap alts highlighting parabolic rallies, and some mid-cap and small cap alts pumping due to strong fundamentals. .
At the time of writing, some of these indicators were showing bullish signals for the altcoin market, a sign that an alternate season could be ahead.
But is it too early?
Now some would argue that the aforementioned statement is a simplification, perhaps even premature. Indicators alone may not point to an alternate upcoming season.
However, it would be fair to say that we spent a month of altcoin as 75% of the top 50 currencies performed better than Bitcoin in the past 30 days. If these alternatives had performed better than BTC in the last 90 days, then it would have been an alternative season.
In fact, Altseason Index also highlighted an almost vertical spike in it.
By looking at all the metrics and signs, it can be said that this is the start of an alternate season and that the last month was an alternate month. If altcoins continue to dominate for another two months, then we can officially call this an alt season. For now, however, it appears that there is an alternate season on the market.
This is a machine translation of our English version.
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