Key Takeaways
Are altcoins still under pressure from Bitcoin?
With more alts down 60% year-over-year than those with gains, more capital could still be strongly in Bitcoin’s favor.
Can November turn things around?
Yes. This is the same low sentiment zone that meant local bottoms 90% of the time, meaning a rotation could then occur.
Altcoins are under pressure, but that could change.
Sentiment is sinking and important projects are gaining momentum! Will November surprise us all?
Altcoins are still being crushed by Bitcoin
Source: Alpharactal
In the last 60 days, altcoins have been hammered. In fact, the Altcoin Season Index is stuck deep in ‘Bitcoin Season’ – a sign that capital continues to favor BTC over everything else.
Source: Arkham Intelligence
Arkham data have added even more weight here – More altcoins have fallen by 60% or more in the past year than altcoins that have made any gains at all. But usually these exact moments (when altcoins look completely ruined) are often the turning point.
This pattern has been seen before, where liquidity eventually rotates. And November was one of those months where BTC’s dominance started to decline.
Altcoins could just get their heads above water again.
There’s nowhere to go but up!
Source: TradingView
Bitcoin’s dominance was around 60.6% at the time of writing. At first glance, this means that altcoins are still heavily ignored. Here’s where things get interesting, though.
Source: Alpharactal
In fact: the market is currently sitting in the lowest “orange/red” zone since April, the very region that marked local bottoms more than 90% of the time.
Altcoins may look weak now, but extreme sentiment like this is a turning point. One in which the money starts flowing back in, and not out.
The rotation no one is talking about…
And here is where this all happens connect again.
Source: Santiment
While altcoins are still under pressure and sentiment is still faded, the only part of the market currently showing consistent improvement in the ‘smart money level’ is the development of the privacy layer. Starknet [STRK] leads the pack in 30-day development activities, followed by zkSync [ZK] and World Currency [WLD].
Nim [NYM]Change in shape [FOX]Oasis Protocol [ROSE] and ZCash [ZEC] are also building hard, despite deep price drops. In the past, money moved first to sectors that showed early growth.
And this group may be seeing the first signs of life in an otherwise tired altcoin market.