According to CoinWorld, cryptocurrency market analysts have been meticulously studying charts for signals of altcoin breakouts. However, they have yet to take significant actions, typically following suit after a surge in Bitcoin.
On September 24, Glassnode co-founder “Negentropic” observed the Bitcoin/altcoin cycle, noting that altcoins tend to follow Bitcoin’s bullish momentum. “It seems we are on the brink of altcoin season,” he added, “Once BTC breaks its ATH and enters uncharted territory, we will inevitably experience a strong surge.”
Currently, Bitcoin is down approximately 14.5% from its historical high, while most altcoins are still over 50% from their peaks.
#Altcoins
Following the bullish momentum
#Bitcoin
It seems we are about to welcome Altcoin season. We will certainly experience a strong surge
$BTC
Breaking ATH and entering uncharted territory.
#Altseason
#OldTown2024
pic.twitter.com/7QFoR6Ow6x
–(@Negentropic)
September 23, 2024
Is the Altcoin season approaching?
The analyst added that this will be the classic rotation cycle for BTC, followed by Ethereum, then large-cap altcoins, and finally smaller-cap tokens. “Since May, we have seen Bitcoin rise three times without any signs of an altcoin season,” he noted. “Now we see altcoin cycle indicators soaring close to -50 before Bitcoin performs strongly. We have a feeling the next surge will happen simultaneously.”
Additionally, in terms of profit, Bitcoin has experienced its best September ever, which is traditionally a bearish month, with the ratio so far approaching 9%. On September 23, Web3 developer “Tracer” predicted that “the biggest season will start in nine days.” They added that this situation has occurred twice before, in 2017 and 2021; meanwhile, “Elja” informed his 686,000 X followers that “the biggest altcoin season will start in the fourth quarter.”
The biggest season will start in the fourth quarter
Everything is on the charts
pic.twitter.com/rLuMzrvLx4
–Elja (@Eljaboom)
September 22, 2024
Another factor influencing altseason is Bitcoin’s dominance, currently at a three-and-a-half-year high of 57.5%. According to TradingView, analysts indicate that BTC’s dominance is nearing its peak and may retreat below 50%, which would be good news for altcoins.
Today’s top altcoin performers
At the time of writing, the cryptocurrency market was down 1.6% for the day, with a total market capitalization decreasing to $2.31 trillion. However, a few altcoins are still performing well. Among them is Near Protocol (Near), which rose by 14.5% in the past 24 hours to reach $5.21.
The AI token TAO (Bittensor) also increased by 5% that day, bringing its weekly gain to as high as 84%. Bitcoin layer two project Stacks (STX) performed well today, rising by 7%. Arweave (AR) and Celestia (TIA) also saw increases of 16% and 20%, respectively.
