Bitcoin is often at the forefront of the cryptocurrency market’s ups and downs. The “Altcoin Season Ethereum” arrives, though, when alternative cryptocurrencies begin to outperform Bitcoin notably. Many altcoins have seen tremendous growth compared to Bitcoin during the last 90 days, suggesting that the crypto market is undergoing a change.
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Altcoin Season 75% of Top 50 Cryptos Beating Bitcoin
When 75 per cent of the top 50 coins have performed better than Bitcoin in the last 90 days, it is Altcoin Season Ethereum. The top 50 don’t include stablecoins or tokens backed by assets. The cryptocurrency market has recently been trending downward despite hitting significant support levels, particularly for altcoins. Even if Bitcoin stays in a larger consolidation phase, a recovery and bounce are on the horizon.
Credit: Blockchaincenter.com. The website displays the top 50 cryptocurrencies based on their performance over the past 90 days. As a result of Altseason and the growing dominance of altcoins, this situation could lead to altcoins outperforming Bitcoin. A graph shows the market capitalization of all cryptocurrencies. Image courtesy of TradingView.}
Looking at the overall market cap of cryptocurrencies, the chart indicates a deeper A-B-C corrective wave, with Bitcoin being the primary influence. Nevertheless, cryptocurrencies stand to gain the most from a market stabilization that could occur shortly due to a comeback in wave B. The a-b-c corrective structure for wave B/2 has been helping Bitcoin regain its supremacy. This has led to cryptocurrencies’ recent underperformance.
Bitcoin’s Resistance Is Altseason Here
The upper channel boundary and the Fibonacci levels of 61.8% and 78.6% form a crucial resistance zone that Bitcoin’s dominance is quickly nearing.
Attention investors: the 59%-60% resistance area is a key level to watch. A reversal from here might trigger wave C or 3 of Bitcoin’s decline, which in turn could strengthen altcoin dominance and the current Altseason.
Thus, we must ask: Are we in the midst of the Altseason? Hmm, not just yet. Most altcoins exceeded Bitcoin’s 69.9% rise during the last 90 days, as shown in the figure that depicts the performance of the top 50 cryptocurrencies over this period. This clearly indicates an altseason.
This is a visualization of the Bitcoin market share. Image source: ading View. At the forefront, HBAR (+405.9%), BGB (+354.8%), XRP (+302%), and XLM (+300.3%) are exhibiting remarkable increases.
Other altcoins, like UNI, VET, and LINK, solidified their dominance in this cycle with increases above 100%. Nonetheless, it maintains its role as a market stabilizer. The asymmetrical character of the market’s movements was illustrated by a small number of assets that underperformed substantially, such as KAS (-20.4%), EFT (-19%), and IMX (-18.2%).
Ethereum’s Rise Against Bitcoin Key to Altcoin Rally
In order to start a major cryptocurrency rally, Altcoin Season Ethereum biggest altcoin by market cap—usually has to do better than Bitcoin. Ether’s rise against Bitcoin typically signals a “risk-on” attitude in the cryptocurrency market, which is excellent news for altcoins.
You can monitor this dynamic by examining the ETHBTC trading pair, which indicates the value of Ether compared to Bitcoin. It is at 0.03 as of December 23. While an upward trend would indicate that Ether is gaining market share, a negative trend would show that it is losing ground against Bitcoin.
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