The cryptocurrency market experienced some instability in the past week, mostly leaning towards the negative. Despite expectations of an altcoin season, recent data suggests that investors may have to wait longer for it to materialize.
In actuality, it is likely that an altcoin surge won’t occur until 2025.
Bitcoin Maintains its Superiority
Alphractal, a renowned data analysis platform, recently shared a tweet with significant insights. According to the tweet, only a few altcoins have managed to outperform Bitcoin [BTC] in the past month.
Typically, when BTC rises and establishes stability, certain altcoins tend to excel.
Nevertheless, there is still no indication of an altcoin season within this cycle over a 90-day period. Meanwhile, the dominance of Bitcoin has continued to increase. This increase is justified by the lackluster performances of most altcoins.
Despite a minor decrease in Bitcoin’s value in the short term, altcoins have experienced even more significant declines, reinforcing the expectation that Bitcoin will continue to expand its market share.
In just a week, BTC dominance jumped by 1%, and currently stands at over 56%.
Furthermore, CryptoCrypto analysis indicated that the altcoin season index was at 27. Typically, a reading near or below 25 signals a Bitcoin-dominated phase, while a metric hitting 75 signifies an altcoin season. All these data points strongly suggested a prolonged wait for an altcoin season.
Performance of Leading Altcoins
To evaluate the potential for altcoins to start a rally, CryptoCrypto examined the statuses of Ethereum [ETH], BNB, and Solana [SOL].
Based on Santiment’s data analysis, ETH’s weighted sentiment dipped last week, indicating a rise in bearish sentiment.
Interestingly, despite a decline in price, BNB’s weighted sentiment remained high. A similar upward trend was also noticeable in Solana’s chart, signaling investor confidence in BNB and SOL with expectations of a price increase soon.
Subsequently, the derivatives metrics of these altcoins were reviewed. Notably, while BNB and SOL saw an increase in weighted sentiment, their long/short ratios decreased based on Coinglass’ data.
A drop in the ratio indicates more short positions in the market compared to long positions, a bearish sign. Conversely, ETH’s long/short ratio witnessed a notable uptick, hinting at a potential price upswing.