Over the last 90 days, 15 out of the top 50 non-Bitcoin (BTC) cryptocurrencies have performed better than the top coin. As a result, there is speculation that the next altcoin season could be closer than ever.
Whether that will happen or not will be decided in the coming weeks or months. However, this analysis checks if BTC would give altcoins some breathing space.
Altcoin Season Index Rises, but Bitcoin Dominance Stays Too
According to Blockchaincenter, the altcoin season index has hit 31. Some days ago, the same index was less than 25. But for altcoins season to come to pass, at least 75% of the top 50 cryptocurrencies, excluding Bitcoin, must outperform it.
This crypto excludes stablecoins like USDT, USDC, and the like. However, as mentioned above, 15, representing 30%, have done this over the last 90 days. Some of the altcoins with better performance include Sui (SUI), Fantom (FTM), Uniswap (UNI), and Dogecoin (DOGE), to mention a few.
Some weeks back, this was not the case, as several altcoins lagged behind BTC. Therefore, the rising index suggests that the next altcoin season could be approaching as the year closes and 2025 approaches.
Read more: What Is Altcoin Season? A Comprehensive Guide
Altcoin Season Index. Source: BlockchaincenterHowever, investors have to watch out for Bitcoin’s dominance (BTC.D). Just today, Bitcoin’s price hit a new all-time high amid Donald Trump’s election as the new US president, bringing Bitcoin’s dominance to a new high of 60.61%.
Typically, BTC.D has to decline to validate the alt season. Therefore, this current condition suggests that even though alt season could be nearby, it could take a while as Bitcoin still seems to be in control of the market direction.
Bitcoin Dominance. Source: TradingViewAltcoin Market Cap Breaks Key Resistance
Despite Bitcoin’s rising dominance, the daily chart of TOTAL2 shows that it has broken out of a descending triangle. For context, TOTAL2 is the total market capitalization of the top 100 cryptocurrencies excluding BTC.
A descending triangle, on the other hand, is a technical pattern characterized by a sloping downward trendline and horizontal support. If the TOTA2 value slips below the support line, then the trend is bearish, and altcoins might struggle to match Bitcoin’s performance.
But in this case, it has broken above the falling trendline, suggesting that the next altcoin season is almost here. Should that be the case, the TOTAL2 value could rise above the $1 trillion market cap to validate the outlook.
Read more: Which Are the Best Altcoins To Invest in November 2024?
TOTAL2 Daily Analysis. Source: TradingView However, if the value drops below the support line, this could be invalidated, and Bitcoin might continue to outperform other altcoins.
