Altcoin Season Opportunities Decline, But 3 Indicators Suggest Possible Recovery

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On December 4, the Altcoin Season Index reached 88, indicating that non-Bitcoin cryptocurrencies may perform better than the number one currency. However, the Altcoin Season Opportunities may suffer a huge blow.

Despite this, it seems that the long-awaited season is coming back. The following three indicators show that many of the top 50 cryptocurrencies may soon see significant gains.

Altcoin season refers to a period when altcoins outperform Bitcoin in terms of market capitalization growth. The Altcoin Season Index measures this trend, determining whether 75% of the top 50 cryptocurrencies have outperformed Bitcoin.

Typically, index values ​​above 75 indicate the beginning of the altcoin season, while index values ​​reaching 25 reflect Bitcoin's dominance. As of now, however, the index has fallen to 49, highlighting the setbacks suffered by altcoins as Bitcoin regains its footing in the market.

But despite the decline, the altcoin season does not seem to be over. Bitcoin’s dominance is one indicator.

A rise in Bitcoin’s dominance generally means a growing preference for Bitcoin, especially during periods of market uncertainty. The trend suggests that investors consider Bitcoin a safer option given its relative stability and solid market position.

As dominance rises, interest in small-cap cryptocurrencies may decline, which could lead to a decrease in capital inflows into altcoins. A few weeks ago, Bitcoin’s dominance climbed to 62%, suggesting that altcoins may not continue to play a minor role

But at the time of writing, it has fallen to 58.82%, indicating that altcoins have taken a share. If the decline continues, then BTC prices may fall, while altcoin prices may soar.

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