AltSeason incoming? After Bitcoin's rally, it's the AltCoins' turn.

in LeoFinance16 hours ago

November 2024 Sets a Record. After Bitcoin's Surge to $100k, Attention Shifts to Altcoins: Is AltSeason Incoming? Check Out This Data

Bitcoin Breathing Near $100k
There’s still a week left in November, but the current performance is mind-blowing. After Bitcoin’s wild rally, with a 39.5% increase on the monthly chart, the psychological threshold of $100,000 allows the price to stabilize, attract liquidity, and prepare for the next price movement.

This is precisely what Altcoins need—a moment of calm in Bitcoin’s rally to enable the first wave of capital migration.

Notably, after the steady growth of Bitcoin Dominance (BTC.D) over the past two years, the chart now stands at 60%, a critical level. In spring 2021, the 60% level in BTC.D was the last inefficient level on the weekly chart that triggered an explosive Altcoin rally.

Today, after over 1,300 days, we’re back at this level. Therefore, we can expect an initial correction in dominance, which has already dropped by 5% over the last four days. You can find more insights on market analysis on our Learn platform.

ETH/BTC: Is the Struggle Coming to an End?
In previous cycles, we’ve observed a clear pattern: Bitcoin hits new ATHs (All-Time Highs), capital then migrates to Ethereum, which also hits new ATHs, and subsequently rotates into Altcoins based on the prevailing narratives.

Ethereum, now near $3,400, still has approximately 45% to go before revisiting its all-time highs around $4,900. Although its price is under significant pressure against Bitcoin, the ETH/BTC pair is at a key level.

Currently trading near its lowest price levels in three years, the pair is approaching the largest monthly inefficiency of the last cycle.

Located at a 0.035 level, near the current price, this inefficiency previously propelled ETH/BTC to reach its last cycle’s highs.

This level marks a critical turning point. A strong positive reaction here could apply significant upward pressure on ETH, pushing it towards its dollar-based ATHs.

This could further fuel a broader Altcoin market rally, paving the way for a genuine AltSeason in this cycle.

AltSeason Index and Altcoin Performance
Another interesting metric to watch is the "AltCoin Season Index," which measures the growth of the top Altcoins relative to Bitcoin over the past 90 days.

The index is based on how many top Altcoins (excluding stablecoins and wrapped tokens) outperform Bitcoin in the last 90 days. A score below 25 indicates a Bitcoin Season, while a score above 75 signals an AltCoin Season.

Currently, the index sits at an intermediate level of 43. This reflects significant strength among Altcoins, though there’s still room for higher levels, especially with the favorable new legislative environment expected under the new U.S. administration.

The prospects for a robust AltSeason are becoming increasingly tangible. 2025 is shaping up to be a year of strong growth, particularly for Altcoins that previously faced regulatory challenges. These projects now have the opportunity to advance their development and attract substantial capital that was previously restricted.

By Gue22 🌐🚀⚡

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