When is Altseason: 3 Causes Altcoin Season Has Started

Bittime - Altseason is a period where altcoins outperform Bitcoin. Find out when altseason starts and how to identify it in this article. Learn the key signs of altcoin season that can benefit traders!

Altseason is a phenomenon that many traders and investors in the crypto market look forward to. It's a period where altcoins, or cryptocurrencies other than Bitcoin, outperform Bitcoin.

With sharp spikes in the price and trading volume of altcoins, altseason is an exciting time for those looking to make big profits in a short period of time. But when does altseason start? This article will discuss the three main culprits that indicate that altcoin season has arrived.

What is Altseason and When does Altseason Start?

Altseason is a term used to describe a phase of the crypto market where altcoins experience significant price increases, often surpassing Bitcoin's performance.

Typically, this happens after Bitcoin has experienced a large price increase and reached its peak, so investors begin to turn to altcoins in search of greater returns. 

So, when does altseason start? The process usually begins when several technical and fundamental factors favor a shift in dominance from Bitcoin to altcoins.

Read also: When does Altcoin Season (Altseason) occur? 3 Important Indicators to Confirm

3 Main Causes for Altseason to Start

1. Bitcoin's Declining Dominance

One of the key indicators that altseason has arrived is Bitcoin's declining dominance in the crypto market. When Bitcoin's dominance drops below 50%, it's a sign that the altcoin market is starting to boom.

In November 2024, for example, Bitcoin experienced a decline in dominance of more than 7%, and this opened up a huge opportunity for altcoins to take over. 

Bitcoin's decline in dominance indicates that a large portion of market capital is starting to flow into altcoins, which could trigger price spikes in various altcoins.

2. Spike in Altcoin Market Capitalization

In addition to the decline in Bitcoin's dominance, another factor is the surge in altcoin market capitalization. The market capitalization of altcoins recorded a significant increase at the end of 2024, even reaching a new all-time high of $1.16 trillion.

This shows that altcoins are getting more attention and investment, especially when Bitcoin is underperforming. By breaking through the Fibonacci retracement level, altcoins are predicted to continue rising, creating stronger momentum for altseason.

3. Innovation and Positive Sentiment Towards Altcoins

Technological innovation in the altcoin ecosystem is also an important factor in starting the altseason. As blockchain technology evolves and new adoptions within the DeFi sector, NFTs, and Layer 2 solutions, altcoins such as Ethereum, Solana, and others are starting to gain more traction.

The positive sentiment around altcoins, driven by these developments, created a new wave of investor interest, which shifted away from Bitcoin to explore the potential of altcoins.

Also read: Altcoin Season Starts as Bitcoin Price Slumps, Here's Why!

How to Identify Altseason?

To identify whether the altseason has started, there are several technical indicators that can be used. One of them is the higher trading volume of altcoins compared to Bitcoin.

Also, observation of technical indicators such as Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) on altcoins can help determine if there is further upside potential.

In addition to technical indicators, it is also important to pay attention to overall market trends. If many altcoins start performing better than Bitcoin, this could be a strong signal that altseason is underway. 

Therefore, it is important for investors to keep a close eye on market movements and the latest news regarding altcoins.

Conclusion

Altseason is a much-anticipated period in the crypto world, especially for traders looking to make quick profits. The three main reasons for the start of the altseason are the decline in Bitcoin's dominance, the surge in altcoin market capitalization, and technological innovations that spark investor interest.

By paying attention to technical indicators and market developments, investors can identify when the altseason begins and capitalize on it to make maximum profits. So, make sure to stay updated with market trends and make strategic moves when altcoin season comes!

FAQ

What is Altseason?

Altseason is a period in the crypto market when altcoins (cryptocurrencies other than Bitcoin) experience significant price increases and outperform Bitcoin. This often happens after Bitcoin has peaked, and investors turn to altcoins in search of greater opportunities.

When does Altseason Start?

Altseason usually begins when Bitcoin's dominance starts to decline in the market, and the market capitalization of altcoins starts to show significant growth. In addition, technological innovation and positive sentiment towards altcoins are also major factors that trigger the start of altseason.

How to Identify Altseason?

Altseasons can be identified by monitoring Bitcoin's declining dominance, spikes in altcoin prices and trading volumes, and technical indicators such as RSI and MACD. If altcoins collectively outperform Bitcoin, this signals that altseason is underway.

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Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference

ccn.com, Altcoin Season Has Finally Started - Here's What Lies Ahead, accessed on December 9, 2024.

cryptomaniaks.com, Altcoin Season Explained: What Is Altseason And How To Capitalize On It, accessed on 9 December 2024.

Author: AWW