Is the altcoin season coming or is another Bitcoin ATH coming?
Bitcoin is the leading cryptocurrency and altcoins are often subject to their price movements. In the past 3 months, however, the altcoin has picked up some speed on its own.
Is the Altcoin Season Coming?
Altseason (altseason) is calculated based on the performance of the top 50 Altcoins over 90 days (excluding stablecoins and asset-backed tokens). If you look at the top 50 list, it looks like we are enjoying the altcoin season.
However, the reality is not like that.
While many altcoins hit new all-time highs in the past 30 days, the number of crypto bulls made up only 63% of the top 50 altcoins. Altseason can be considered “coming” when it crosses the 75% threshold, which was last seen in March of this year.
Old season ad | Source: BlockChain Center
Surprisingly, the major altcoins currently leading the uptrend are not what you would expect. The performance of many well-known coins is really disappointing, such as ADA, LTC, BCH.
ADA has gone from being one of the most hyped coins to the one that has disappointed investors the most. At its peak, ADA was the third largest cryptocurrency based on predictions about the emergence of smart contracts. Since then, however, the performance in the charts has been rather bleak.
While the larger coins didn’t perform as expected, others like FTM, SHIB, SOL, AVAX, AR, etc. each gained more than 400%.
This time the top altcoins of the old season | Source: BlockChain Center
What triggered the “old season”?
Although there are many triggers (events), the DeFi boom has to be the biggest contributor to the old season (if / when it happens).
Since most of the tokens on the top performing list are derived from DeFi chains that are performing excellently in this area (Terra, Decentraland, Polkadot, etc.), DeFi as the reason for the old season comes as no surprise.
However, while altcoins are rising, Bitcoin is not slowing down either. Although it’s been 17 days since it hit an all-time high, the crypto king is down but only 7.8% lower.
Bitcoin price 4-hour chart | Source: TradingView
In terms of price levels, the indicators seem to suggest that Bitcoin’s downtrend is coming to an end. If the broader market continues to rise, BTC could continue to rise and hit new all-time highs.
So time is the most important factor at this point. The longer Bitcoin consolidates, the greater the chance for altcoins to experience an altcoin season.
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According to AMBCrypto