Almost every crypto investor is eagerly awaiting the long-awaited altseason. This is the phase during a bull run where altcoins experience explosive increases in value. But when can we expect this period? The answer lies in a combination of several factors.
What are the most important indicators for an altseason?
Two factors are of decisive importance for the emergence of an altseason: Bitcoin (BTC) dominance and the price of Ethereum (ETH).
Bitcoin dominance
BTC dominance measures Bitcoin’s share of the total market capitalization of the crypto market. When this dominance decreases, it means that altcoins will take a larger share of the market. This scenario is an important indicator for the start of an altseason.
Ethereum price
Ethereum, often called the king among altcoins, plays a crucial role. When ETH rises in value – especially against BTC – altcoins usually perform very well as well. The relative strength of ETH versus BTC is therefore an important indicator for the altcoin market.
In recent months, BTC dominance has fallen significantly after a two-year upward trend. This could be the start of a further downward trend. At the same time, ETH price is on an upward move and is approaching the $4,000 level again. Furthermore, ETH appears to have reached a major bottom against BTC, which could indicate a possible trend reversal. A rise in ETH/BTC trading pairs could herald the start of an altseason in the coming period.
Bitcoin’s role in the broader market
Not only the BTC dominance and the ETH price are important; the price development of Bitcoin itself also plays a major role. Bitcoin recently fell below the psychologically important $100,000 level and is currently trading around $97,400. A breakthrough above $100,000 seems crucial for a further revival of the crypto market.
The well-known Dutch crypto analyst Daan agrees with this. He predicts that a break above $99,000 will unleash a new price explosion. According to him, Bitcoin’s previous consolidation phases have often been followed by increases of 30 to 50 percent. He expects this advance to take place in the first quarter of 2025. This is in line with Hartmann’s analysis, who states that a possible altseason will have to wait a while.
Conclusion
Although there are signs pointing to the arrival of an altseason, it remains to be seen how the market will develop. The BTC dominance, the ETH/BTC ratio and a possible Bitcoin breakthrough play a key role in this. It is therefore important for crypto investors to keep a close eye on these indicators. With a little patience, the long-awaited altseason can become a reality.
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Source: https://newsbit.nl/altseason-in-aantocht-dit-zijn-de-signalen-waar-je-op-moet-letten/
