Time for Altseason. Although the altcoin market has been downward for the last two weeks, a crucial indicator suggests that the current dip may signify a “relative momentum bottom.” If this pattern holds, crypto experts predict a “concerted take-off” shortly.
“The Top 200 Equal Weight Index of cryptocurrencies is still trending downwards, but the Altseason indicator shows that the recent washout when it hit 10% was likely a relative momentum bottom,” says Jamie Coutts, Chief Crypto Analyst at Real Vision.
An equally weighted index that attempts to follow the performance of the top 200 cryptocurrencies by market capitalization from Bitcoin is the Crypto Top 200 Equal Weight Index. The chart that Coutts demonstrates the index’s declining trend and the Altseason Indicator’s 10% low. A 90-day checkback showed that “only 10% of the top 200 were outperforming BTC,” as the analyst put it.
Altcoins Market
This has traditionally signaled a bottom and the beginning of a long rally for alternative cryptocurrency markets. “Many altcoins have begun to build decent bases, so it may be some time before we see a concerted take-off. ” Time for Altseason: When making his forecast for the future of the altcoin industry, Coutts took into account not only one indicator across the entire crypto market but also the number of daily active users (DAUs).
The Decentralized Address Unit (DAU) represents the daily volume of unique public addresses that transact on a blockchain. Coutts pointed out that the total number of DAUs across all blockchains is up 97% this year, meaning “growth continues unabated.” He said that “higher asset prices” would result from increased user fees caused by a larger customer base.
In a July 15 post, popular crypto analyst Moustache stated, “I think some Altcoins out there are ready for round 2.” He went on to say that the much-anticipated debut of spot Ethereum ETFs could provide the necessary support. Mustache previously posted this graphic, which showed the cryptocurrency market cap following a pattern similar to 2020, just before “their strongest wave in the bull run.”
It’s Still Bitcoin Season
The Bitcoin dominance chart, which displays the percentage of the cryptocurrency market occupied by Bitcoin (BTC $64,548) compared to the total number of coins, is another indicator that some individuals use to determine whether or not the alt season has begun. It can also gain insight into market players’ general mindset and readiness to take risks.
This indicator reached a three-year high of 56.5% on April 13, extending its upward trend that started at the beginning of 2024. Bitcoin’s current dominance, which stands at 54%, indicates that Bitcoin is still very much in popularity as of the time this article was written.
Final Thoughts
The final fact is that when compared to Bitcoin, other cryptocurrencies are not performing as well. According to an analysis conducted by Blockchain Center, only 37 percent of the top 50 cryptocurrencies have performed better than Bitcoin over the past three months. Although this is encouraging, it is insufficient to declare that an altcoin season has begun. A seventy-five percent threshold is necessary to declare an alternative season. Even though indicators are starting to materialize, this suggests that it may be too soon to declare that an altcoin season has begun.
