Bitcoin’s price defended $65,000 this week, effectively helping to reset a key altcoin seasonal signal to a “neutral” level, increasing the likelihood of further recovery.
This is reported by a blockchain analysis company Swiss blocchanged the Alts Impulse signal from negative to neutral, and a subsequent move to ‘positive’ could trigger a near-term altcoin season.
“Should we witness a sharp spike in positive momentum – which would trigger a decisive bullish crossover – that would be an accurate signal of near-term upside.”
Source: Swissblock
The signal turned negative in February, but relaxed the past few days. This raised hopes of short-term relief for the altcoin market after extensive bleeding following BTC’s prolonged plunge to the sub-$60,000 range.
Hence the question: do other data sets correspond to a potential altcoin peak?
The influx of stablecoins suggests…
The Stablecoin Exchange Inflow, which tracks purchasing power, has increased since January.
This rose to $4 billion in February, underscoring more capital being deployed into the market, supporting the rebound earlier this month. However, since February 10, the value has fallen slightly from $4.3 billion to $3.7 billion.
Source: CryptoQuant
This was not a sharp decline compared to the recovery from the beginning of the year. Thus, the continued recovery of the metric could support the altcoin’s expected rise. However, a longer dip would mean limited capital inflows, leaving the market as a whole vulnerable.
That said, the ETH/BTC ratio, another key altcoin seasonal tracker, recovered 3.5% in recent days. It suggested that ETH was outperforming BTC – a pattern that has always marked the recovery of the altcoin market.
Should the ratio rise above February levels, a relatively strong altcoin season could be in store.
Ssource: ETH/BTC ratio, TradingView
So far, Zcash is among the top 20 crypto assets by market capitalization [ZEC] has led the most recent rally and is up 24% in the last 24 hours.
Hedera hash graph [HBAR] and Bitcoin Cash [BCH] each also saw a 10% recovery, while Solana [SOL] increased by 8% in the same period. Ethereum [ETH] saw a 6% gain and claimed $2k back.
Will Bitcoin Hedging Spoil the Altcoin Party?
The broader altcoin market recovery could be spreading, as evidenced by the Alt Impulse signal. However, any reversal in the Bitcoin price could spoil the party.
According to Glass junctionthere appeared to be heavy hedging and positioning for a downward move. The bearish positioning rose almost 12% over the past month – a sign that the sideways structure above $60,000 was raising some skepticism.
If BTC falls, the altcoin market will follow suit.
Source: Glassnode
Final summary
- The altcoin market turned to ‘neutral’ after negative momentum a few days ago, raising hopes of a short-term surge.
- However, the positive outlook could be derailed if BTC falls or capital inflows into the market stagnate.