December saw a deceleration in the momentum of the altcoin season following a tumultuous surge in November that boosted the values of Dogecoin [DOGE], Ripple [XRP], and Hedera Hashgraph [HBAR].
As historical trends in Bitcoin [BTC] dominance indicate a potential decline, there is anticipation building for the onset of the next phase of the altcoin season.
Is the Altcoin Season Approaching?
An analysis by cryptocurrency expert TechDev 52 suggests that Bitcoin dominance (BTC.D) may experience a decrease in January, possibly heralding the awaited revival of the altcoin season. In his assessment,
“Past data hints at the upcoming prime period for altcoins.”
An evaluation spanning over six months revealed that BTC Dominance (BTC.D) had reached a critical resistance level in its long-term trendline. A rejection at this point could lead to a decline in BTC dominance, paving the way for a potential resurgence in altcoins.
Moreover, the ETH/BTC ratio forecasts a bullish outlook for the altcoin domain. This ratio gauges ETH’s performance relative to BTC and is considered a key indicator of altcoin health, given ETH’s position as the foremost altcoin.
Observations from blockchain analytics agency SwissBlock indicated that the ETH/BTC ratio had hit a low as BTC.D encountered challenges, implying that a recovery in the altcoin season could be on the horizon.
In one of its Telegram notifications, the agency commented,
“BTC’s dominance is showing signs of waning momentum, and the ETH/BTC ratio has marked an upward trend, potentially indicating a floor. Could this be the opportunity for altcoins to shine, even temporarily?”
While certain altcoins demonstrated strong performance in the previous week amidst an overall market downturn, including Virtual Protocol [VIRTUAL] rising by almost 30% to $4 for the first time, Gate Token [GT] and FTX Token [FTT] witnessing an 18% surge each, the broader altcoin market showed minimal movement, as reflected by the Altcoin Season Index hovering in neutral territory. This suggests that the momentum of the alt-season might either rebound or further depreciate.
Presently, there appears to be a growing number of advocates for ETH over BTC, signaling a potential favorable trajectory for the primary altcoin and the broader market as a whole.