- The altcoin market has been performing well for the past five months, but has stalled due to concerns about a halving.
- The next such run may take some time to materialize, but the signs will remain clear.
The altcoin market has lost significant value over the past month as fear swirled around Bitcoin. [BTC] Reduced by half.
Famous Cryptocurrency Analyst Ali Martinez On X (formerly Twitter), it was observed that the altcoin season begins immediately after the Bitcoin halving.
Altseason is the period when the market capitalization of altcoins doubles. Given how capital turnover is thought to work in the cryptocurrency space, this typically doesn’t last more than a few months.
However, it gives investors a great opportunity to earn profits.
Is altcoin season approaching again?
sauce: Ali_charts for X
The altcoin’s seasonal index crossed 75 in early 2024. While the halving event saw the index fluctuate to a value of 25, reflecting Bitcoin’s season, altcoins have actually lost far more value than Bitcoin over the past month. Ta.
This was a result of concerns about selling pressure behind Bitcoin. At the time of writing, the index was at 39 and did not reflect the altcoin season.
Source: USDT.D on TradingView
Tether technical analysis [USDT] The dominant chart indicated that its downtrend was nearing an end.
The downward trend in USDTD is a good sign as it shows that investors are taking risks and exchanging stablecoins for crypto assets.
An upward trend in USDT dominance indicates the opposite.
Therefore, the ortho season requires a strong downtrend. The Directional Movement Index on the 3-day chart showed a downward trend from late October to early April.
This was a significant amount of time and suggested that the market needed time to reset before entering the next downtrend. Additionally, Cyan’s box highlights his BTC halving of 2020 and his 2024.
If parallels to 2020 play out, altcoins could lose further value in the coming weeks.
The purchasing power of the market was rising
sauce: cryptoquant
AMBCrypto’s analysis of CryptoQuant data shows that purchasing power has increased since mid-October. Stablecoin exchange reserves reflect the purchasing power of the cryptocurrency market.
Compared to the 2020-2021 run, the indicators are still not as parabolic as in previous cycles. Due to the significant market capitalization expansion in 2021, foreign exchange reserves have increased dramatically.
read bitcoin [BTC] Price prediction for 2024-2025
Therefore, another rapid increase in stablecoin reserves would signal that a new altcoin season is upon us.
Combining this with the Tethered Dominance Chart and Altcoin Seasonal Index could give investors an edge in the market.
