It’s Altcoin Season!
According to data from the Blockchain Center, we have entered altcoin season. This means that the top 75% of the top 50 altcoins have outperformed Bitcoin (BTC) over the past 90 days.
Ethereum (ETH) Dominance
The dominance of Ethereum (ETH) is a key indicator of altcoin season. In 2022 and early 2023, ETH dominance was on the rise. However, it started to decline in mid-2023. Now, in 2024, ETH is attempting to reverse this trend and surpass the long-term trend line from 2020.
Total Market Cap and Bitcoin Dominance
The Total Market Cap chart provides insight into the performance of altcoins. As more money flows into the crypto market and Bitcoin dominance decreases, a larger percentage of funds are likely going into altcoins.
Potential Upward Move
The Total3 chart excludes BTC and ETH, focusing solely on altcoins. Currently, the market cap of altcoins is facing resistance at $501 billion. If this level is broken, it could lead to a significant upward move of over $100 billion, potentially signaling a full-fledged alt season.
Traders should proceed with caution and practice proper risk management, as market conditions can change. It’s important to consider both positive and negative scenarios.
Hot Take: Altcoin Season is Upon Us!
With the recent data indicating altcoin season, it’s an exciting time for cryptocurrency enthusiasts. The performance of altcoins relative to Bitcoin, ETH dominance, and the total market cap all point to a possible surge in altcoin prices. However, it’s crucial to stay vigilant and assess the risks involved. As always, the market can be unpredictable, and it’s important to have a well-thought-out strategy and risk management plan in place. If altcoin season does unfold, it could present significant opportunities for investors, but careful analysis and decision-making are essential to navigate the crypto market successfully.
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