Altcoins have recently surged along with Bitcoin, which hit a new all-time high this week. Despite Bitcoin’s record price, the cryptocurrency leader is beginning to lose its dominance in the market.
This shift has increased interest in the upcoming altcoin season, also known as AltSeason, as altcoins gain popularity among investors.
AltSeason is just around the corner
Crypto analyst MikyBull Crypto highlighted that Bitcoin dominance is approaching a bearish MACD crossover. Historically, this has often been seen as a key indicator of the upcoming altcoin season.
According to the analyst, the reason for this shift is the post-election atmosphere, as it has historically acted as a catalyst for altcoin rallies. This potential shift in market conditions could lead to a stage where altcoins surpass Bitcoin in terms of growth.
Likewise, an IncomeSharks analyst suggested that Bitcoin’s dominance signals momentum is shifting to altcoins. IncomeSharks recommends that investors “buy and hold” altcoins through November, expecting continued growth throughout the month.
This analysis is consistent with the view that altcoin season could begin towards the end of the month as investors look to diversify away from Bitcoin. Thus, investors looking to get the most out of altcoins may need to hold their horses until confirmation is received.
Altcoin season is coming
The Altcoin Season Index currently reflects that while Bitcoin’s dominance is declining, it has not disappeared completely. For AltSeason to officially begin, 75% of the top 50 altcoins must outperform Bitcoin. This test requires 33 of these altcoins to show stronger growth than BTC, confirming the arrival of this season.
Currently, only 19 altcoins outperform Bitcoin in terms of profits, indicating that AltSeason has not yet been fully realized. If this figure rises, it will mark a definitive shift. However, for now, Bitcoin’s influence still remains, delaying the start of a strong altcoin rally.
If institutional interest in Bitcoin increases, BTC’s dominance could increase, potentially delaying the altcoin season until 2025. Increased BTC-focused investment could extend Bitcoin’s lead, curbing altcoin gains until broader conditions favor alternative assets.
