- The founders of Glassnode believe that an altcoin season could soon arrive.
- However, BTC’s dominance has remained high despite ETH’s worrying underperformance
According to Glassnode founders Jan Happel and Yann Allemann, the market could soon see a strong altcoin season. The executives believe that the last two Bitcoin [BTC] increases towards $70,000 did not lead to a similarly stronger move for altcoins.
However, the next move higher could mean a new ATH for BTC, boosted in part by “strong altcoin undercurrent.” shared Happel and Allemann. In doing so, they quoted their own BTC/ALT cycle statistic.
“Is Altcoin Season Just a Few Days Away? Given an Altcoin season, the next $BTC run-up will likely break March’s record, buoyed by a strong #Altcoin undercurrent.”
Source:
Here it is worth pointing out that the metrics measure BTC vs Altcoin seasons, and March was the last time a strong alt season took place. At the time of writing, the metric was about to cross the 50-neutral mark. According to Happel and Allemann, this could mean a big rise for the altcoins on the market.
Is altcoin season closer?
Needless to say, this observation led to more analysis from the rest of the crypto community.
Another crypto analyst and investor, TechDev_12repeated the same view. He quoted Dogecoin’s [DOGE] price promotion. The analyst emphasized that DOGE’s weekly price pattern so far reflects the 2021 trend, before the explosive rally in the past cycle.
Source: TechDev_12
Some analysts use DOGE and ETH to gauge the health and strength of the altcoin sector. If DOGE’s trend repeats and the correlation holds, altcoin season could happen.
However, so far the numerous altcoin season calls made in the past have been declared invalid. For those using the ETH/BTC ratio to gauge the sector, the adoption of Spot ETH ETFs was seen as a potential trigger.
In fact, the founders of Glassnode themselves created a similar altcoin season telephone conversation in July on the basis of the same. However, since the projection, the ETH/BTC ratio, which tracks the relative value of ETH to BTC, has fallen to new yearly lows. There was no alt season during the same period.
Source: ETH/BTC, TradingView
What this meant was that BTC outperformed ETH. Moreover, it is increasing dominance could further dampen the overall outlook for the altcoin season. Especially if you measure the alt market by the performance of ETH.
At the time of writing: Blockchain Center’s Altcoin Season Index reading suggested that it is still a solid BTC season.
Source: Blockchain Center
Although the price rose slightly in September, it was not as strong for altcoins as it was between late 2023 and early 2024. Whether the recovery will continue to develop and herald a sustainable altcoin season remains to be seen.
Credit : ambcrypto.com
