Why Bitcoin’s dominance may not stop altcoins’ historical pattern
- The anticipated altcoin season could still happen before Bitcoin’s next halving.
- Altcoins like INJ, LINK, and SOL are showing signs of strength and readiness for a rally.
For most of the second half (H2) of 2023, there was speculation that an altcoin season was nearby. But to the disappointment of the eagerly anticipated, altcoins could not fulfill the expectation.
How much are 1,10,100 BTCs worth today?
For context, an altcoin season describes a period where cryptocurrencies outperform Bitcoin [BTC].
Patience is the name of the game
However, trader and founder of MN Trading Michaël van de Poppe opined that the possibility should not be written off. He believed that Bitcoin’s rising dominance may have halted the initial altcoin sentiment.
The analyst also mentioned that this cycle, being the longest bear market ever, may have also pushed the altcoin season forward.
#Altcoins are in the last part of the bear cycle.
Yes, it feels relatively painful. The sentiment is completely gone, no interest in crypto.
The only thing moving is #Bitcoin and, yet, that one needs to crack some levels.
The end is near for the bear market. Read here?… pic.twitter.com/TLijWdMNKF
— Michaël van de Poppe (@CryptoMichNL) October 18, 2023
Despite the weakness shown by these cryptocurrencies, van de Poppe noted that the historical altcoin season would happen before the 2024 Bitcoin halving.
Furthermore, the analyst defended his point by making an example of tokens that were performing well.
At the time of writing, INJ had a 10% increase in the last 30 days. LINK’s performance within the same period was also an 8.76% hike, while SOL had more with 18.42%.
The market may be prepared for altcoins
But price action is not the only metric that could impact potential performance. Other metrics relating to network activity can also help in projecting how far a cryptocurrency’s value can go.
To start with, Injective’s 30-day active addresses jumped 2x between 15 October and the time of writing.
Active addresses show the level of interaction around a project. Thus, the hike in the metric suggests that there was a high level of speculation (possible accumulation) around INJ.
In a case where the interaction maintains the status quo, INJ’s price may not be far away from a substantial increase.
Another metric to consider in this regard is token circulation. But this time, the focus is on Chainlink.
At press time, LINK’s Circulation (30d) metric was down to 52.12 million, meaning a lot of the tokens had not been used and have remained dormant within the aforementioned timeframe.
Realistic or not, here’s LINK’s market cap in ETH terms
Typically, an increase in circulation would have suggested a high selling pressure. But the circulation decreased, and LINK may continue to hold tightly to $7.
Additionally, van de Poppe concluded that Ethereum’s press time weakness was a sign of its last correction against Bitcoin. Due to this, altcoins may be close to their bottom and could be gearing for a leg up.