Altcoin Season Index of 35 Indicates Bitcoin Season Is Here, but Altcoins Are Trying to Keep Pace

The current state of the cryptocurrency market is indicating a blend of seasons, as reflected by the CoinMarketCap (CMC) Altcoin Season Index scoring 35

The CoinMarketCap (CMC) Altcoin Season Index is currently at 35 out of 100, indicating that the market is closer to a Bitcoin season than an Altcoin Season. This index measures the performance of the top 100 altcoins relative to Bitcoin over the past 90 days. A higher index value indicates that altcoins are outperforming Bitcoin, while a lower value suggests the opposite.

Altcoin Season is defined as the period when altcoins outperform Bitcoin by 75%. On the other hand, if less than a quarter of altcoins outperform Bitcoin, it is known as Bitcoin Season.

This index is a crucial metric for investors to understand, especially in the context of the upcoming market shifts. While Bitcoin has been dominating the market throughout 2024, with minimal changes in the Altcoin Season Index, there might be signs of an impending Altcoin Season on the horizon.

In this type of market, altcoins experience a surge in trade volume and value, often outperforming Bitcoin in terms of price gains. This shift usually occurs after Bitcoin reaches new highs, and traders begin to seek out other assets with higher potential for growth.

However, in the current market landscape, altcoins are struggling to keep up with Bitcoin's impressive performance. For instance, assets like Solana, Dogecoin, and Pepe Coin have seen some price increases, but their gains haven't been substantial enough to drive the overall market.

According to CoinMarketCap data, BTC still leads the market cap rankings with over $422 billion, followed by ETH at $162 billion and BNB at $68 billion. Among the top gainers in the past 24 hours are Pepe Coin, up by more than 120%, Dogecoin, and Solana, with price increases of over 7%.

Crypto enthusiasts are on the lookout for any signs indicating the approach of an Altcoin season. Based on historical observations, altcoin seasons are often triggered by several key indicators.

One common sign is when Bitcoin hits a new all-time high, usually followed by a period of sideways movement or consolidation. Another indication is a decrease in Bitcoin's market dominance, which can occur when altcoins experience a collective surge in price or trading activity.

Finally, another sign is when significant altcoins, such as ETH, BNB, or XRP, break through prolonged resistance levels, often signaling a shift in market sentiment towards altcoins.

In the past years (2017-2018 and 2020-2021), we've seen altcoin seasons, where BTC dominance declined significantly, and altcoins experienced a bull run.

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