The Altcoin Market: A Look at the Historical Lows and Future Predictions
The altcoin market has had a tumultuous year in 2022, but the first half of 2023 has shown signs of hope. However, long-term indicators reveal that altcoins’ strength against Bitcoin is currently at historic lows. Let’s break down the key points:
- Altcoin Season Index data shows that the altcoin market is currently at levels last seen in 2019-2020.
- Historical data indicates that these lows preceded the exponential bull market of the TOTAL2 chart in late 2020.
- The Altcoin Season Index analyzes the relationship between the price growth of Bitcoin and the top 50 altcoins. Values below 25 suggest a Bitcoin season, while values above 75 indicate altcoin dominance.
- The altcoin market has been in a long-term accumulation phase since May 2019, with periodic drops to historic lows.
- Based on past cycles, the altcoin market is predicted to remain at these lows until September 2024, with the altcoin bull market starting about six months after Bitcoin’s halving in April 2024.
Furthermore, only five altcoins from the top 50 market capitalization ranking have outperformed Bitcoin in the last year: INJ, XDC, XRP, BCH, and LTC. This suggests that Bitcoin has been the top performer among the 50 altcoins.
In summary, the altcoin market is currently at historic lows against Bitcoin, indicating a potential accumulation phase until September 2024. While this may seem discouraging for altcoin holders, it also presents an opportunity to build a long-term portfolio that can yield impressive returns during the next bull market.
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