Signals Suggest Revival of Altcoin Market? - INDICATORS TO WATCH
Snap! It's Potentially Altcoin Time!
Shares | Tweets------------|------------Altcoin season might just be heating up with Bitcoin taking a chill pill
Let's dive into the cryptoverse vibes in May, where the rhymes are ringing loud and clear: altcoin season may be knocking on our door!
winks
Swissblock, a renowned analytics firm, has scribbled on the cryptowall that the "First leg of Altseason incoming." F ellas, remember that last time we saw this sorta graffiti was February and November of 202×Ø– that'll keep you guessing.
Jump to the attached graffiti, and you'll notice an uptick in positive altcoin impulse (blue) – a trend that popped up during those 202×Ø– altcoin run-ups.
But it's not all about positive vibes, fam. Our boy and crypto analyst, Benjamin Cowen, agrees with Swissblock's outlook. He's spotted an increasing number of altcoins reppin' the streets above the 100-day SMA.
Now we've taken a gander at key altcoin season markers to see if there's a solid beat behind this budding momentum.
Bitcoin's dominance (BTC.D) hit a cycle high of 65.3% back in early May, which slowed down the broader altcoin sector's April comeback. However, when BTC jumped above $100K last week, it took a 4% hit in dominance, dropping to 62%.
Now that's not all - Tether's USDT dominance (USDT, orange) has been on a rapid descent, dropping from 6% to 4.5% in the last three weeks. This implies that there's sumn' rotatin' in the altcoin sector from BTC and USDT.
Sources: Swissblock, TradingView, X
In case you're lost in the graffiti, lemme catch you up: last November's altcoin pump was also marked by similar signals - a sharp BTC and USDT dominance drop. So, if the trend repeats, Swissblock's outlook might just be validated.
Despite that, it's still a BTC party as per the Altcoin Season Index (ASI) reading of 27. But don't fret, fam – the ASI tracks BTC's performance vis-à-vis altcoins over the past 90 days; it lags a bit.
Worthy Mentions
- Monero [XMR], Sui [SUI], Bittensor [TAO], and Tron [TRX] have been kicking some serious BTC butt.
- Some analysts advise focusing on sub-sector leaders with strong fundamentals for better positioning.
- Ethereum and Solana are also on the radar for their strong fundamentals and recent price gains.
Crosses fingers for altcoin season gains
Word on the Street: Greetings from the OG Analysts
- Joao Wedson of Alphractal predicts an all-out alt season in June, expecting a chunk of Bitcoin's market cap to slide into altcoins.
- Some analysts foresee some serious daily gains for altcoins, with predictions of up to 40% daily increases becoming more common during an alt season.
Plan of Action
- Keep an eye on Ethereum and Solana – they're on fire!
- Focus on altcoins with strong fundamentals for better positioning.
- Wear your seatbelt – altcoin seasons come with high volatility and rapid price swings.
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- The rhymes in the cryptoverse are indicating an altcoin season might be approaching, as Bitcoin seems to be taking a break.
- Swissblock's analysis suggests the "First leg of Altseason" is on the horizon, with a drop in Bitcoin's dominance and Tether's dominance potentially signaling a rotation towards altcoins.
- Analyzing key altcoin season markers, some altcoins like Monero, Sui, Bittensor, and Tron have shown strength against Bitcoin, mimicking the signs of the last altcoin pump in November.
- words of wisdom from OG analysts like Joao Wedson of Alphractal, anticipating an all-out alt season in June, with a potential shift of Bitcoin's market cap into altcoins.
