Market dominance might be gradually shifting away from Bitcoin, the largest cryptocurrency asset, following the recent upside momentum of altcoins in the past few weeks. This indicates that the much-anticipated altseason, where these assets often attract more gains than BTC, could be on the horizon.
Altcoin Gaining Traction Amid Improving Market Conditions
Excitement about a potential altseason is brewing significantly among crypto investors and traders as several altcoins continue to showcase robust performances in comparison to Bitcoin. Advanced investment and on-chain data platform Alphractal, reported the development after thoroughly examining the Altcoin Season Index, a key metric that calculates the percentage of tokens that outperform or underperform BTC.
Alphractal report comes after impressive rallies by leading alts over the last few weeks, with constantly increasing trading volumes and strong investor interest. This shift in momentum may signal the start of a profitable phase for these tokens.
The Altcoins Season Index shows that in the last 60 days, the performance of the tokens has moved out of the lower region, also known as the “Bitcoin Season.” Historically, an increase in this measure indicates that the tokens are starting to perform better than Bitcoin.
Furthermore, in the short term, particularly the 4-hour and the 30-hour time frame, the data reveals that the assets have been outperforming BTC by a large margin. As a result, it can be concluded that numerous altcoins are unlikely to follow the same ferocity of Bitcoin’s surge or decline, eventually creating resistance to BTC’s supremacy over time.
According to Alphractal, this scenario offers investors and traders the chance to diversify their portfolios by speculating on altcoins and progressive lowering of exposure to Bitcoin. However, these assets have a promising risk-reward ratio and are now at lower prices.
As the tokens’ value increases, the investment platform is confident that they are likely to aid in the collection of more Satoshis over time, making this a phase of strategic accumulation. Given the persistent increase in trading volume and interest in the tokens, crypto investors are closely monitoring the current momentum in anticipation of development transforming into a full-fledged altseason.
Alts Market Cap Undergoes Key Breakout
The market capitalization of altcoins known as Total 3 is demonstrating substantial growth, creating new highs as reported by Negentropic, a crypto expert and the co-founder of on-chain data and financial platform Glassnode, suggesting that an altseason is imminent.
Negentropic’s claim is based on a breakout from its compression, strongly exceeding March highs but remaining below its all-time high. His chart shows that Total 3 has been compressing for over a month, reflecting a renewed rise in capital flow.
With liquidity rising, the expert noted that this explosive surge foreshadows the future of altcoins. As a result, finding entry points requires keeping an eye out for possible retracements.
Featured image from Unsplash, chart from Tradingview.com
