Recently, altcoins have surged alongside Bitcoin, which just reached a new all-time high this week. Although Bitcoin's price peaked, the leading cryptocurrency is gradually losing its dominance.
This shift has attracted interest in an 'altcoin season', also known as AltSeason, as altcoins increasingly draw attention from investors.
Altseason is not far away
Crypto analyst MikyBull Crypto states that the dominance rate of Bitcoin is close to a bearish crossover on the MACD. Historically, this is often seen as an important sign signaling an upcoming altcoin season.
According to analysts, the post-election atmosphere is driving this change, as historically, it has often been a catalyst for altcoin rallies. A potential shift in market conditions could lead to a phase where altcoins outperform Bitcoin in terms of growth.
The dominance rate of Bitcoin is about to decline | Source: Milkybull Crypto
Similarly, analyst IncomeSharks believes that the dominance rate of Bitcoin is signaling a shift of capital towards altcoins. IncomeSharks recommends investors to 'buy and hold' altcoins throughout November, predicting continuous growth during the month.
This analysis aligns with the view that altcoin season may begin at the end of the month when investors look to diversify their assets away from Bitcoin. Therefore, investors looking to seize opportunities with altcoins may need to patiently wait for confirmation.
The emergence of altcoin season
The Altcoin Season index currently reflects that although the dominance rate of Bitcoin is declining, it has not completely disappeared. For Altseason to officially start, 75% of the top 50 altcoins need to outperform Bitcoin in terms of growth. This requires 33 of these altcoins to perform better than BTC, confirming its emergence.
Currently, only 19 altcoins have outperformed Bitcoin in terms of profits, indicating that Altseason has not truly occurred yet. If this number increases, it will be a clear sign of a shift. However, for now, the influence of Bitcoin remains strong, delaying a significant rally for altcoins.
Altcoin season index | Source: Blockchain Center
If institutional interest in Bitcoin increases, the dominance rate of BTC could be reinforced, potentially pushing back the Altcoin Season until 2025. Increased investment focused on BTC may prolong Bitcoin's leading position, suppressing the growth of altcoins until more favorable conditions for alternative assets arise.
Source: https://tapchibitcoin.io/mua-altcoin-dang-o-rat-gan.html
