Crypto

Do we already have the beginnings of the alternate season? – Cryponaut

While the global cryptocurrency market is slowing down, the dominance gap from Bitcoin to altcoins has narrowed considerably in recent days. The alts took advantage of the correction to catch up with BTC, whose market dominance is just 42.2%. We have even seen altcoins reaching new ATHs in a bag. Is this enough to scream the start of the altcoin season?

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What are the theoretical conditions for the alternate season?

The alt season is a period through which other cryptocurrencies or altcoins outperform Bitcoin, the main cryptocurrency on the market. Specifically, there is an alternate season when secondary cryptocurrencies as a whole are growing faster than bitcoin.

The history of cryptocurrencies has already recorded two great reasons. The premiere took place at the end of 2017 from the beginning of 2018 (November-January). It was caused by the ICO wave launched after the 2017 bullrun. Altcoin’s second season wasn’t long ago. It appeared there between December 2020 and May 2021. The latter was boosted by the emergence of DeFi and NFT.

To better understand this phenomenon, experts have developed an indicator called: Altcoin Season Index. What does this indicator say? If 75% of the top 50 currencies outperformed Bitcoin in the past season (90 days), it is Altcoin season. Stabecloins (Tether, DAI…) and asset-backed tokens (WBTC, stETH, cLINK,…) are excluded from the Top 50.

So we can retain three elements to evoke a possible arrival of an alternate season:

  • Decreased dominance of the bitcoin market
  • Accelerated growth of altcoins (corollary of the first element)
  • Emergence and expansion of new categories of crypto projects (Metaverse tokens could be the basis for a season of highs in the future)

Bitcoin lags behind, but the rise is not far off

The bitcoin price lost 18.7% during this bear market. Its price went from $ 69,018 to $ 56,016. However, holding the 58,300 support line gives hope for a bullish BTC this year-end. Currently, it is trading at $ 59,139 on eToro with a daily growth of 1.14%.

Marcel Pechman, a Cointelegraph contributor starts from his ideas to say that bitcoin’s fall towards $ 56,000 could be the local bottom. Give three reasons to defend your position. First, it claims that the correction did not lead to strong sell-offs in the market. On the contrary, some whales took the opportunity to buy BTC during this “crash”. He then indicated that the 25% delta bias indicator shows that option traders are quite calm. Finally, it reveals that margin traders maintain their long position.

MANA, AVAX, SAND and eGold, the alts are “on fire”

The metaverse tokens were not affected by the global cryptocurrency correction. Be it Decentraland, Sandbox or Enjin, they are all back to their best. On a weekly basis, its price increased by 20.78%, 46.60% and 16.57% respectively. Currently, the metaverse industry is worth $ 41 billion.

These tokens weren’t the only ones that performed well. Avalanche (AVAX) records a new record in the stock market at $ 138.23 and at the same time displaces Shiba Inu in eleventh place in the market. In 7 days, the price of AVAX rose 40.7% on the stock market. eGold is doing well after launching its mega $ 1.29 billion financing plan. Its price has risen 13.29% in the last 24 hours.

The verdict :

Do we already have the beginnings of the alternate season?

Altcoin Seasonal Index – Source: Bitpanda

The current value of the Altcoin seasonal index is 49. So it is not altcoin season yet. Looking at the chart, the index has been tilting in recent days. Which means, in general, that the decline in bitcoin has not been as beneficial to most altcoins as might have been thought. When we compare the fall in the price of bitcoin with other cryptocurrencies in the top 20 during the last 7, there are only 5 cryptocurrencies that do better than King Coin. However, their dominance of the market is declining at the industrial level. Furthermore, the weight of the ether increases more and more. Approaching 20%

The verdict is more than clear: there is still no alternate season or sarcastic tone (alternate season downloads at 49%). So when will it take place?

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