Altseason Pulls Further Away But There is a Caveat

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As a seasoned crypto investor with several years of experience under my belt, I’ve seen my fair share of market cycles and trends. While the prospect of an altcoin season is always exciting, based on current market indicators, I believe we’re not quite there yet.

The cryptocurrency market may experience a surge of altcoins, referred to as “altseason,” yet it’s essential for traders and investors to exercise caution. The current bearish trend in the Ethereum (ETH) to Bitcoin (BTC) trading pair indicates that this anticipated event might still be on hold for now.

Altcoin Season Still Not On the Horizon

As a crypto investor, I’d describe altseason as a time when investors shift their focus and resources from Bitcoin and Ethereum to smaller altcoins. This influx of capital causes the market share of Bitcoin and Ethereum to decrease while that of altcoins picks up. In simpler terms, altseason is the trend of investing in alternative cryptocurrencies during periods of market growth.

As a researcher studying the cryptocurrency market during this timeframe, I’ve observed some intriguing trends. Specifically, altcoins have shown remarkable price growth, even surpassing Bitcoin in terms of value increase. This phenomenon is typically accompanied by heightened trading volumes and an uptick in overall market activity. These trends suggest that investors are increasingly seeking out alternative investment opportunities beyond Bitcoin.

According to the altseason signal given by BlockchainCenter, it appears that the likelihood of cryptocurrency markets experiencing a Bitcoin-focused rally is greater than the probability of a surge in altcoins.

Altseason Pulls Further Away But There is a Caveat

Experts believe that the beginning of an altcoin rally could be signaled when the Ethereum-to-Bitcoin trading ratio turns bullish. The graph presented here suggests a pessimistic perspective. However, until this pairing becomes positive and the price demonstrates a change in trend, the prospect of an altcoin season will remain speculative at best.

To confirm an uptrend in Bitcoin’s price, it needs to rise back above the supply zone, which ranges from $0.0579 to $0.0601. A stable closure above the midline or mean threshold of this price range at $0.0590 would indicate a correction has occurred.

For cautious traders and skeptics, it would be wise to wait for a market structure shift above $0.0611 as evidence of an impending bullish trend. A rise in the Relative Strength Index (RSI) to a new high would further support this hypothesis. The RSI has displayed higher peaks since March, aligning with Bitcoin’s dominance in the market.

Based on current conditions, the probability is higher for losses in the ETH/BTC market. The Relative Strength Index (RSI) hints at an imminent sell signal when it drops beneath the yellow signal line.

Altseason Pulls Further Away But There is a Caveat

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2024-05-30 22:29