The cryptocurrency market experienced some fluctuations in the past week, mostly on the downside. Although many were anticipating a surge in altcoin performance, recent data suggests that investors might have to wait longer for that anticipated altcoin season.
Speculations now point to a possible delay in the altcoin rally until the year 2025.
Bitcoin Continues to Maintain Control
Alphractal, a well-known data analytics platform, recently shared an important update via a tweet. According to the tweet, only a limited number of altcoins managed to outperform Bitcoin [BTC] in the past 30 days.
Typically, during periods of BTC stability and growth, certain altcoins usually shine through. However, over a 90-day timeframe, there are no significant signs of an upcoming altcoin season within this current cycle. Meanwhile, Bitcoin’s dominance in the market has been steadily rising due to the lackluster performances of many altcoins.
Despite a slight decrease in Bitcoin’s recent performance, altcoins have suffered even greater losses, reinforcing the expectation that Bitcoin will continue to solidify its market position.
In just one week, the BTC dominance surged by 1%, reaching a value of over 56% at the time of writing.
Additionally, CryptoCrypto’s analysis indicated that the altcoin season index currently stands at 27. Typically, a reading near or below 25 is indicative of a period favorable to Bitcoin, while a value of 75 or higher signals altcoin season. These metrics collectively suggest that the wait for an altcoin season may be prolonged.
Performance of Top Altcoins
To assess the potential for an altcoin rally, CryptoCrypto examined the statuses of Ethereum [ETH], Binance Coin (BNB), and Solana [SOL].
Based on Santiment’s data analysis, ETH experienced a drop in its weighted sentiment last week, signaling an increase in bearish sentiment.
In contrast, despite price fluctuations, the weighted sentiment for BNB remained positive. Similarly, Solana also maintained an upward trend, indicating investor confidence in BNB and SOL with expectations of a price surge.
Further investigation into the derivatives metrics of these altcoins revealed interesting trends. While BNB and SOL saw an increase in weighted sentiment, their long/short ratios declined per Coinglass data.
A decrease in this ratio suggests a higher number of short positions compared to long positions, which may imply a bearish market outlook. Conversely, ETH’s long/short ratio showed a significant increase, hinting at a potential price uptick.