Altcoin season, the time when cryptocurrencies other than Bitcoin (altcoins) outperform, is facing challenges. On December 4th, the Altcoin Season Index reached 88, a positive sign that altcoins could lead the market. However, this index has now dropped to 49, indicating that Bitcoin is regaining its dominance.
Bitcoin Rises Strongly, But Altcoins Are Still Not 'Out of the Game'
Bitcoin's dominance previously peaked at 62%, reducing interest in altcoins as investors turned to Bitcoin as a safe haven.
However, this dominance has now decreased to 58.82%, raising hopes that altcoins may recover in the near future.
If this trend continues, Bitcoin's price could adjust, creating opportunities for altcoins to grow stronger.
Signs of Recovery from Altcoin Market Capitalization
The TOTAL2 market capitalization, tracking the top 125 altcoins, is currently at $1.35 trillion, lower than expected.
But the good news is that TOTAL2 has just broken out of a descending triangle pattern, an important technical signal indicating the potential for a trend reversal.
If altcoin trading volume increases, this market capitalization could reach $1.65 trillion, triggering a major growth wave and reviving the altcoin season.
Can Altcoin Season Return?
Although altcoins are temporarily losing their position, three important indicators – the decline in Bitcoin's dominance, signs of recovery from TOTAL2, and optimistic technical signals – suggest that the altcoin season is not completely over.
Investors need to closely monitor Bitcoin's movements and the altcoin market capitalization to seize opportunities in this potential phase.
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