Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

Three reasons why an Altseason may be around the corner

2min Read

Share this article

Altseason is a crypto-market cycle phase investors absolutely love. This is a period where altcoins tend to rally, offering gains in the multiples. However, an altseason has a lot of components working together and each of these parts needs to be in the right place to kick-start an altseason.

It all comes together

The cycle for cryptocurrencies, like stock markets, comprises of a bull run and a bear run. However, these distinctions get blurred when taking a nuanced approach. For example, the typical bull run includes Bitcoin and altcoins rallying together. However, in actuality, when BTC starts pumping heavily, altcoins take a backseat and only rally when the big crypto cools down for the next leg-up.

However, as the bull run matures, both asset classes rally in tandem.

The leading factor behind an altseason is capital rotation from investors trying to maximize their profits. Now that Bitcoin has established its presence and moved past the $45,000-hurdle, there is a good chance altcoins will rally. In fact, many altcoins are already rallying by >20% in a single day.

Another observation is that the dominance of Bitcoin reduces during an altseason. Currently, the dominance of BTC is hovering around 42% after a rejection at 44%. From the looks of it, this retracement will extend, pushing BTC dominance to 39% or 40%.

Such a southbound move is a sign that capital is flowing from BTC to altcoins. 

Source: BTC Dominance, TradingView

Bitcoin and altcoins have a say

Another factor that backs the assertion that an altseason is starting is Bitcoin’s price. Although there is a good chance BTC might hit $53,000, there is no proof or supporting arguments that indicate that the rally will extend beyond this level.

As seen in the chart attached below, Bitcoin’s price has three major areas of support – 

  1. $52,000 to $53,486
  2. $42,076 to $44,654
  3. $35,000 to $37,033.

The first area is a major hurdle and clearing it is unlikely. The second one is the immediate support level and the third area is the last line of defense. Breaching the last support area could trigger a crash to $30,000 or lower.

The recent run-up shattered the $45,000 resistance barrier and has also moved above the yearly open, suggesting a resurgence of buyers. However, due to the presence of overhead barriers, Bitcoin’s price action will be limited. Also, it likely to bracket between these areas. 

Source: BTC/USDT, TradingView

Finally, the altcoin index also suggested that flipping the 4,146 hurdle will eliminate any and all immediate hurdles, allowing altcoins to rally.

Source: Altcoin Index

Thanks to Bitcoin’s sideways movement, the reduction in its dominance, and the altcoin index’s current reading, the altseason seems more than likely to kick-start itself. All in all, the three aspects reveal the possibility of an altseason and work perfectly well in helping each other.


Jibin Mathew George is Editor-in-Chief at AMBCrypto. A domain expert in International Relations (European Politics), he has always been a believer in the unlimited possibilities afforded by blockchain and by extension, cryptocurrencies. As someone who has been watching and writing about this space for over 5 years now, Jibin has closely tracked the emergence of cryptos and digital assets as a separate asset class in portfolios world over. A lawyer by training, he previously contributed to the News and Research desk of Diplomacy & Beyond Plus. Before his stint at D&B, he was Editor at ED Times. Jibin also takes a great interest in politics, especially the corresponding effect political decisions and fiscal policy have on the world of finance, with a special focus on cryptocurrencies.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.