When Does Altcoin Season (Altseason) Occur? 3 Important Indicators for Confirmation

Bittime - Currently, altcoins are facing major challenges. 

These digital assets, which include all cryptocurrencies other than Bitcoin, have been heavily pressured by Bitcoin's dominance. 

Even though there are several tokens that have experienced increases, in general, altcoin movements tend to be unstable. 

If you wait for the moment "altseason"—when altcoins surpass Bitcoin—here are 3 important indicators to pay attention to:

1. TOTAL2 Index is Approaching the Upper Bollinger Band

Altcoin rallies rely heavily on strong momentum, and this is where the weekly Bollinger Bands come into play. 

This indicator tracks investment volatility around a 20-week moving average. 

The wider the band, the greater the volatility.

In a true altcoin rally, you want to see volatility rise—as the crypto market moves closer to the upper Bollinger Band, pulling it higher week after week. 

In the graph showing the TOTAL2 index (crypto market value without Bitcoin), you can see how altcoins are surging.

2. Ethereum Should Reverse Downtrend Against Bitcoin

As the largest altcoin by market capitalization, Ethereum (ETH) needs to perform better than Bitcoin to trigger a significant altcoin rally. 

When ETH rallies against Bitcoin, it often signals that the crypto market is in “risk-on” mode, which is much needed for altcoin growth.

The best way to monitor this is to look at the ETH/BTC trading pair. 

When this trend declines, ETH loses value against Bitcoin, and vice versa. 

In previous altcoin rallies, ETH showed an uptrend by creating higher highs and lower lows. 

Currently, the trend is in decline, with lower highs and lower lows.

To be optimistic about altcoins again, you need to see this trend change.

3. Bitcoin Should Experience a “Blue Sky Breakout”

Bitcoin, as the cryptocurrency market leader, has a huge influence on altcoins. 

Altcoins usually start to perform well after Bitcoin breaks through previous bull market highs and enters the "price discovery" phase. 

Under these conditions, more funds and activity (liquidity) from traders and investors will flow into the market, which often benefits altcoins.

If Bitcoin experiences a “blue sky breakout”—for example, by closing the week above $75,000—market sentiment could change. 

First, this breakout will attract media attention, creating new enthusiasm among investors. 

Furthermore, with more investors investing in Bitcoin in pursuit of rising prices, savvy traders will likely shift some of their profits to Ethereum and other altcoins to execute “catch-up trades.”

Bitcoin currently accounts for about 60% of the total cryptocurrency market capitalization, so small changes in its liquidity can have a big impact on altcoin prices.

Read too When will Altcoin Season Start in 2024 and 2025? These are the signs!

What Opportunities Are There in the 2024 - 2025 Altseason?

Altseasons don't happen often, but when they do, they can be an opportunity to make good profits. 

However, time is of the essence. If you enter too early, you may miss out on better opportunities. 

On the other hand, if you enter too late, you could be trapped in a risky position.

If you believe that altseason is coming, consider gradually building a position in Ethereum and other blue-chip altcoins now.

While Bitcoin is near its all-time high and Ethereum is still "cheap" compared to Bitcoin.

If Bitcoin breaks out and Ethereum shows strength, adding to the altcoin position could be the right move. 

Then, if the altcoin market starts to move closer to the upper weekly Bollinger Band, you will be better prepared to deal with volatility.

FAQ about Altcoin Season

When does ALT Price Increase?

Altcoins typically experience a rally after Bitcoin reaches a new record high and enters a "price discovery" phase. 

When Bitcoin shows strength and attracts the attention of investors, altcoins tend to follow suit and start to rally.

How Long Is Alt Season?

The length of altseasons varies, but generally lasts from a few weeks to a few months.

 This depends on market conditions and how long Bitcoin maintains its bullish momentum.

Are Altcoins Rising After Bitcoin?

Yes, altcoins often rally after Bitcoin. 

As Bitcoin reaches new peaks, many investors are starting to shift some of their profits to altcoins, which can cause price spikes in those assets.

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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

Jonathan Hobbs, It's Officially Altcoin Season (When These Three Things Happen), Accessed December 2, 2024

Author: IN