It is known that the cryptocurrency market is largely guided by the development of Bitcoin (BTC). This is beneficial in times like these for crypto traders who prefer to invest in altcoins.
When BTC price goes down, altcoins tend to follow. But when a bottom sets in, altcoins often rise in the bitcoin consolidation phase. In such a scenario, some people speak of an altcoin season. Since Bitcoin has currently collapsed below $30,000, it is still a bit early to speak of an altcoin season. However, analysts see a number of different aspects pointing to an altcoin season. Let’s look at these.
ETH/BTC price action could be a leading indicator
Analyst and Twitter user PlanDeFi uses the ETH/BTC chart as an indicator of whether an altcoin season is about to kick off. He posted the chart below, comparing ETH/BTC’s 2016/2017 performance with 2021’s performance /2022 compares.
“Looks pretty damn similar, right? Accumulation>Breakout>Rising Channel>Breakout. The market is bigger now, so it’s just taking longer.
According to his forecast, the next altseason could start sometime after early July and extend into late 2022.
2017 fractal indicates old season
El_Crypto_Prof provided further evidence that the market is at a turning point. he posted the chart below where he looks at the history of the altcoin market cap.
“For altcoins, I can imagine the following scenario. There are just too many similarities to the previous cycle. The RSI also looks incredible. The next wave will catch many by surprise.”
Market Clear In “Bitcoin Season”
While fractals are beautiful to look at and give hope, most of them don’t happen and they’re not a reliable way to analyze trades.
The Altseason Indicator, on the other hand, offers an indicator-based method to predict when the market will be in “Bitcoin Season” and when it will be in “Altcoin Season”.
Based on the chart above, it doesn’t look like there will be an altseason anytime soon. The indicator is currently at 24. An old season is only signaled from 75 onwards.
So far, this index has taken at least 2-3 months to switch from a bitcoin season to an altcoin season. According to the indicator, there will not be an altcoin season until August or September 2022.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk and you should do your research before making a decision.
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