Altcoin Season Indicator: Is the Altcoin Season On?
The on-chain analytics firm Glassnode has provided insights into the current status of the altcoin season in its latest weekly report. To determine whether the โaltseasonโ is happening, Glassnode has developed its Altseason Indicator. This metric assesses whether investors are in a risk-on mode based on capital rotations in the cryptocurrency market. The indicator considers two conditions to determine the altcoin season status:
- Capital netflows involving Bitcoin (BTC), Ethereum (ETH), and stablecoins
- Momentum in the altcoin market cap itself
To activate the altcoin season, all three asset classes should have positive netflows, indicating capital inflows into the sector. Additionally, the altcoin market cap should be above its 30-day simple moving average (SMA). The Altseason Indicator initially signaled a risk-on sentiment in October last year but turned off after the launch of Bitcoin spot ETFs. However, after a 22-day hiatus this month, the indicator suggests that the altcoin season is back on.
BTC Price
Currently, Bitcoin is trading around $50,900, experiencing a 1% decline over the past week.
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