The Next Bitcoin Surge and the Potential Altcoin Season
Recent insights from Glassnode’s co-founders, Jan Happel and Yann Allemann, indicate a looming altcoin season following Bitcoin’s upcoming surge. Despite two previous Bitcoin upswings towards $70k not triggering a similar momentum for altcoins, Happel and Allemann suggest that the next leg up could propel Bitcoin to new all-time highs, supported by a strong undercurrent in the altcoin market.
“Is Altcoin Season just days away? Given an Altcoin Season, the next $BTC run-up will likely break March’s all-time high, carried by a strong #Altcoin undercurrent.”
The metric developed by Glassnode focuses on comparing Bitcoin and altcoin seasons, with the last significant alt season noted back in March. Currently, the metric is nearing the 50-neutral mark, hinting at a potential significant boost for altcoins in the market, according to Happel and Allemann.
The Rumors of an Impending Altcoin Season
These observations have sparked further analysis across the cryptocurrency community, with TechDev_12, a prominent crypto analyst and investor, echoing similar sentiments. Pointing to Dogecoin’s price action pattern, TechDev_12 drew parallels between the current trends and that of 2021, prior to its explosive rally in the last cycle.
Suggestions have been made to monitor DOGE and ETH performance as indicators of the altcoin sector’s health. If DOGE continues to follow its historical trend, an altcoin season may be on the horizon. However, past predictions of altcoin seasons based on various indicators, including the ETH/BTC ratio, have often fallen short, raising questions about the sector’s resilience.
Despite forecasts of an altcoin season after the approval of Spot ETH ETFs, recent data shows that BTC has outperformed ETH, leading to a rise in its dominance and potentially stifling the altcoin season’s prospects. The Altcoin Season Index by Blockchain Centre currently signifies a strong BTC season, indicating that the recovery may not be enough to trigger a sustained altcoin season yet.