Altcoin Season Index Reaches 18 Prominent Coins Encounter Obstacles Amidst the Emergence of Bitcoin Season

Altcoins, excluding Bitcoin and Ethereum, have been facing significant resistance in the market, leading to recent declines. Despite these short-term challenges, analysts believe that if the market follows its regular structural pattern, altcoins could experience growth in the future.

To better understand market movements, it is important to consider the Altseason Index and Bitcoin dominance trends. When Bitcoin’s dominance drops sharply, it often signifies the beginning of altseason. However, the altcoin season index currently stands at 18, suggesting that we are still in the accumulation phase.

To determine if we are in altseason, one can compare the performance of altcoins to Bitcoin. This is commonly done by examining Bitcoin’s dominance, where a sharp decrease indicates altseason. To make this assessment more practical, the Altseason Index was created by blockchaincenter.net. This index evaluates the price change of the top 50 coins by market capitalization. If 75% of these coins outperform Bitcoin over a 90-day period, it indicates an altseason. However, the Altcoin Season Index currently suggests that altcoin season may have already peaked, with the market returning to Bitcoin dominance in the short term.

The same calculation is done for one-month and one-year periods, with a scale ranging from zero to one hundred. A score of 100% means that all the top 50 coins are performing better than Bitcoin. Currently, we are far from entering an altseason, as the index sits at 18. However, historical trends show that it has dropped below 10 before the start of a bull run. In November 2023, the index even hit a low of 4.

In conclusion, while altcoins have been facing resistance in the market, there is potential for growth if the market follows its regular pattern. The Altseason Index and Bitcoin dominance trends provide valuable insights into market movements, indicating whether we are in altseason or not. Currently, the index suggests that altcoin season may have already reached its peak, with the market shifting back to Bitcoin dominance in the near future.