Since the beginning of the year, unusual movements have been observed in the cryptocurrency market. Bitcoin reached an all-time high, while Ethereum has remained stagnant. Most altcoins show more momentum, raising questions about ETH's role in starting altcoin season.
Relationship Between Bitcoin Dominance and Altcoin Season
Three key criteria for the onset of altcoin season include a decrease in Bitcoin's dominance, a strong rally by Ethereum, and an increase in altcoin market cap. Recent data indicates that BTC dominance continues to rise, reaching a resistance level of 61.62%. Historically, during bull runs in 2017 and 2021, Bitcoin's dominance declined sharply after hitting 70%, signaling the beginning of the altcoin season.
Whale Accumulation of ETH and BTC
Purchases by cryptocurrency whales are key indicators of potential market shifts. Recent data shows that whales are accumulating significant amounts of ETH, indicating expectations for substantial price movement. Santiment data supports this by showing a 0.8% increase in addresses holding over 100 BTC, while those with less than 100 BTC decreased by 0.3%, indicating ongoing accumulation of BTC.
The Future of Altcoin Season
The Altcoin Season Index, which measures market trends, currently shows a level of 45, indicating a 'neutral' phase where Bitcoin and altcoins perform similarly. Whether the altcoin season will commence depends on the market's direction in the coming days.
The current situation in the cryptocurrency market remains uncertain, although many factors point to potential changes soon.
