Altcoin season is here? Analysts say altcoin market is nearing a momentum bottom
The altcoin market has been trending down over the past two weeks, but a key indicator shows that the recent decline could signal a "relative momentum bottom," and if history repeats itself, a coordinated takeoff could soon occur, according to cryptocurrency analysts.
Jamie Coutts, chief cryptocurrency analyst at Real Vision, said the Crypto Top 200 Equal Weight Index is still trending down, but the Altcoin Seasonal Indicator shows that the recent 10% drop is likely a relative momentum bottom.
The Crypto Top 200 Equal Weight Index is an equal-weighted index designed to track the performance of the top 200 cryptocurrencies by market cap relative to Bitcoin.
Coutts shared the chart below, showing that the index has been trending down, with the Altcoin Seasonal Indicator reaching a 10% low. This means that only 10% of the top 200 outperformed BTC in the 90-day lookback, the analyst explained.
Historically, this marks a market bottom, followed by a sustained rise in altcoins.
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The indicator has been trending upward since the beginning of 2024, reaching a three-year high of 56.5% on April 13. As of the time of this article, BTC dominance is 54%, indicating that it is still Bitcoin season.
This means that although the signs of altcoin season are beginning to converge, it may be too early to make a judgment now.
