Over the past 90 days, 15 out of the top 50 cryptocurrencies have outperformed Bitcoin (BTC), suggesting that the next altcoin season may be approaching.
Whether this actually happens will be determined in the coming weeks or months. However, this analysis examines whether BTC will give altcoins some breathing room.
Altcoin Season Index Rises... Bitcoin Dominance Still at 60%
According to Blockchaincenter, the Altcoin Season Index has reached 31. A few days ago, this index was below 25. However, for an altcoin season to arrive, at least 75% of the top 50 cryptocurrencies must outperform Bitcoin.
This excludes stablecoins like USDT and USDC. But as mentioned above, 15 of them, or 30%, have achieved this in the last 90 days. Some of the better-performing altcoins include Sui (SUI), Fantom (FTM), Uniswap (UNI), and Dogecoin (DOGE).
A few weeks ago, the situation was not like this, and several altcoins lagged behind BTC. Therefore, the rising index suggests that the next altcoin season may be approaching as we approach the end of the year and 2025.
Read more: What is Altcoin Season? A Comprehensive Guide
However, investors should pay attention to Bitcoin's dominance (BTC.D). Today, Bitcoin price hit a new all-time high, and Bitcoin's dominance reached a new peak of 60.61% as Donald Trump was elected as the new US president.
Generally, BTC.D needs to decrease to confirm an alt season. Therefore, this current situation suggests that an alt season may be approaching, but Bitcoin still dominates the market, so it may take some time.
Altcoin Market Cap Breaks Key Resistance
Despite the rise in Bitcoin's dominance, the daily chart of TOTAL2 has broken out of a descending triangle. TOTAL2 refers to the total market capitalization of the top 100 cryptocurrencies excluding BTC.
A descending triangle is a technical pattern characterized by a downward trend line and a horizontal support line. If the TOTAL2 value falls below the support line, the trend would be bearish, and altcoins would have a hard time catching up to Bitcoin's performance.
However, in this case, the downtrend line has been broken, suggesting that the next altcoin season is almost upon us. If this happens, the TOTAL2 value could surpass the $1 trillion market cap, confirming the outlook.
Read more: Best Altcoins to Invest in November 2024
However, if the value falls below the support line, this would be invalidated, and Bitcoin may continue to outperform other altcoins.
