- Bitcoin price volatility fell sharply, allowing altcoins to shine
- The Altcoin Seasonal Index revealed that the market will soon turn in favor of the alts
Bitcoin [BTC] Investors have waited a long time for the King Coin to reach $100,000, but it takes too much time. Can this wait last any longer? Well, a few recent updates could push BTC into the backseat and allow altcoins to shine in December 2024.
Does this mean a new altcoin season is coming soon?
Bitcoin’s dominance is waning
In recent days, Bitcoin has consolidated near the $96,000 range. This has contributed to a huge drop in the volatility of the king coin. This drop in volatility has led to another important development.
Captain Faibik, a popular crypto analyst, recently shared one tweet bring this incident to light. According to the same document, Bitcoin’s dominance has been moving within a rising wedge pattern since early 2022.
Recently the chart broke out of this pattern, but in a southerly direction, indicating an increase for altcoins. Captain Faibik even talked about a 2024-2025 altcoin season in the tweet.
Source:
Has an altcoin season actually arrived?
The decline in BTC’s dominance is actually helping altcoins increase their own market share. If reported earlier by AMBCrypto, many are speculating that a new altcoin season may be on the horizon. While the odds are favorable for this to happen in 2025, the recent trend of events suggests it could happen sooner than expected.
In fact, it may have already started. For example, Ethereum [ETH]the king of altcoins, remained bullish over the past 24 hours as bulls pushed the price up by more than 3%. Other alts with large market caps have also posted promising performances.
Was at the top of the list XRPwith gains of over 12% in the last 24 hours alone.
Moreover, AMBCrypto’s analysis revealed that the altcoin seasonal index registered a sharp increase, reaching 67 at the time of writing. For reference, a value closer to 75 indicates altcoin season.
Source: Blockchaincenter
Since Ethereum is the top altcoin on the market, AMBCrypto planned to investigate it to find out if the on-chain data indicated a continued bull rally. An assessment of this could help determine the upcoming altcoin season.
Despite the latest price increase, ETH’s NVT ratio has remained low. A decline in this measure means an asset is undervalued, indicating continued price appreciation.
Source: Glassnode
According to the altcoin’s daily chart, it was testing its resistance at the time of writing. The problem, however, was that the Relative Strength Index (RSI) was about to enter overbought territory. This could trigger a selloff and stop the token from sliding further up the charts.
Read Ethereum [ETH] Price prediction 2024-2025
So, while most numbers and market conditions pointed to an altcoin season, it still remains a question whether this will happen in the short term or not.
Source: TradingView