Over the past 90 days, 15 of the top 50 non-Bitcoin (BTC) cryptocurrencies have outperformed the main currency. As a result, there is speculation that altcoin season may be closer than ever.
Whether or not that will happen will be determined in the coming weeks or months. However, these analyses examine whether BTC will give cryptocurrencies some breathing room.
Altcoin Season Index Rises, But Bitcoin Dominance Remains
According to Blockchaincenter, the altcoin season index is at 31. A few days ago, the same index was below 25. But to qualify for the tag, at least 75% of the top 50 cryptocurrencies, excluding Bitcoin, must outperform it.
These cryptocurrencies exclude stablecoins like USDT, USDC, and the like. However, as mentioned above, 15, representing 30%, have done so in the past 90 days. Some of the best performing coins include SUI, Phantom (FTM), Uniswap (UNI), and Dogecoin (DOGE), to name a few.
A few weeks ago, this was not the case, as several altcoins lagged behind BTC. Therefore, the rise in the index suggests that the crypto season may be approaching as the year ends and 2025 approaches.
However, investors should pay attention to Bitcoin (BTC.D) dominance. Just today, Bitcoin price hit a new all-time high after Donald Trump was elected as the new US president, bringing Bitcoin dominance to a new high of 60.61%.
Normally, BTC.D would have to go down to confirm an altcoin season. Therefore, this current situation suggests that while a season may be coming soon, it could take some time as Bitcoin still seems to be controlling the market direction.
Market Cap Breaks Key Resistance Level
Despite Bitcoin’s rising dominance, TOTAL2’s daily chart shows that it has broken out of a descending triangle. To illustrate, TOTAL2 is the total market cap of the top 100 cryptocurrencies excluding BTC.
A descending triangle, on the other hand, is a technical pattern characterized by a sloping downtrend line and horizontal support. If TOTAL2 drops below the support line, the trend is bearish, and altcoins may struggle to keep up with Bitcoin’s performance.
But in this case, it has broken above the downtrend line, indicating that the next crypto season is just around the corner. If so, TOTAL2 could break above the $1 trillion mark to confirm these predictions.
However, if the value drops below the support line, this may be invalidated, and Bitcoin may continue to outperform other altcoins.