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There is motive to imagine that the altcoin season is imminent primarily based on Bitcoin’s latest worth motion. Altcoin season is understood to be a interval when other crypto tokens start to outperform the flagship crypto token. 

Bitcoin To Cool Off For Altcoin Season

Crypto analyst Rekt Capital acknowledged in an X (previously Twitter) post that Bitcoin has just one final Pre-Halving retrace earlier than it goes on a parabolic transfer post-halving. Crypto analyst Sjuul additionally highlighted in an X post how the funding fee is “mildly high” for Bitcoin in the intervening time, one thing which hints {that a} correction was on the horizon. 

With Bitcoin more likely to face a significant correction, this presents the proper alternative for altcoins to make a run of their very own. Ethereum, the second-largest crypto token by market cap, seems set to steer the pack, hitting $3,000 for the primary time in practically two years. Meanwhile, some analysts have famous indicators that affirm that the Altcoin season shouldn’t be far off. 

Crypto analyst Crypto Prof famous that the Gaussian channel on the Altcoins chart has turned inexperienced after nearly 4 years. Also, these altcoins are stated to have damaged by way of the earlier resistance from the final weekly shut. Crypto Prof additional acknowledged that the identical factor occurred in 2016 and 2020, the interval wherein the Altcoin bull run began. 

Stockmonkey Lizards, one other crypto analyst, additionally mentioned on his X platform that the altcoin is shut. In the accompanying chart on his submit, he highlighted how the altcoin market cap was going to run to $10 trillion from its present market cap of just about $900 billion. 

Investors Increasing Their Risk Appetite 

On-chain intelligence platform Glassnode famous in a latest report that their Altseason Momentum indicator has proven a “growing appetite from investors to move capital further out on the risk curve.” This means that crypto traders are extra prepared to deploy a major quantity of their capital to altcoins in anticipation of larger returns. 

Interestingly, this altcoin indicator is alleged to have signalled optimistic momentum since October 2023 earlier than briefly cooling off in the course of the sell-the-news event that occurred after the Spot Bitcoin ETFs approval. However, the indicator is as soon as once more signalling this optimistic momentum having been retriggered on February 4. 

Glassnode additional revealed that, whereas Bitcoin dominance stays important, there are indicators that capital is being rotated into different ecosystems like Ethereum, Solana, Polkadot, and Cosmos. 

Data from Blockchain Center additionally exhibits that the market is gearing nearer to an altcoin season. The altcoin season index at the moment stands at 61%, with an increase to 75% nonetheless wanted earlier than it may be stated that the altcoin season is in full swing. 

BTC dominance rises above 53% | Source: Market Cap BTC Dominance on Tradingview.com

Featured picture from Bitcoinist, chart from Tradingview.com

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