Journalist
Posted:
- Altcoin season appears closer than most think, amid strong market shifts.
- Smart traders are reportedly shifting focus from BTC to altcoins.
Bitcoin [BTC] made a remarkable recovery in September from $52.5K to $65K.
The recovery also boosted altcoins, as the Altcoin Season Index climbed to July levels. Certain altcoins saw huge gains during the rally, especially among the AI and memecoin segments.
However, Alt Season was not yet in full swing, as evidenced by the Altcoin Season Index value of 37.
Source: Blockchain Center
Stage in the Altseason?
However, the main signs pointed to a positive outlook for a wild altcoin season. For example, Bitcoin dominance (BTC.D), which has risen in 2024, faced crucial resistance around the 58% level.
A drop in BTC.D value could provide a breathing space for altcoins to gain more momentum.
Another positive outlook was the altcoin’s market capitalization, excluding BTC and ETH. According to Henrik ZebergAccording to head macroeconomist at Swissblock, the Altcoin sector was ready to explode to a market cap of $3 trillion.
“Bull flag and momentum indicators tell us that the Altcoins market could be heading for a market cap of ~$3 trillion”
Source: Swissblock
Presto research too noted a potential shift, citing a rise in ETH gas prices that could indicate increasing positioning to capture a potential windfall from an altcoin rally.
The research firm added that ETH has outperformed BTC since the Fed turn.
The crypto research firm added that some speculators may be positioned to take advantage of the huge asymmetric risk profile as most altcoins were at yearly lows after recent headwinds.
Source: Presto Research
The ETHBTC ratio recovered by almost 10%, rising from a low of 0.038 to 0.042 after the Fed’s rate cuts. However, at the time of writing it has recovered somewhat.
This meant that the value of ETH gained ground against BTC. Since it is also a barometer for the health of the altcoin market, it suggested that altcoins had a huge relief rally.
Mark Thielsen of 10X Research also shared a similar trajectory for altcoins. He noticed a significant shift among savvy Korean and general traders from BTC to altcoins.
“As Bitcoin rose above $60,000 and set its sights on breaking $65,000, savvy traders have rounded up undervalued altcoins, a list including TAO, ENA, SEI, APT, SUI, NEAR, and GRT.”