During the altseason? Analysts say the altcoin market’s ‘momentum bottom’ is close

The altcoin market has been trending down for the past two weeks, but a key indicator shows that a recent fall could indicate a “relative momentum bottom”, which, if history repeats itself, could soon see a “coordinated rise”, according to crypto analysts.

The crypto Top 200 Equal Weight Index “is still trending down, but the Altseason indicator shows that when it hits 10%, the recent wash may be relatively low,” said Jamie Coates, chief crypto analyst at Real Vision.

The crypto Top 200 Equal Weight Index is an equally weighted index that seeks to track the performance of the top 200 cryptocurrencies by capitalization over Bitcoin.

Coates shared the chart below, which shows the index trending lower, with the Altseason indicator hitting a low of 10%. This means that “only 10% of the top 200 outperformed BTC on a 90-day look back,” the analyst noted.

Historically, this marked a low for the market before a sustained rally in altcoins.

Altcoins can still jump around these levels for a while before we see a concerted rise, many have already started to build a good base. “

Coutts considered another indicator in the broader crypto market—the daily active user (DAU) count—to support his predictions about the direction of the altcoin market.

DAU is a metric that reflects the number of unique public addresses performed on a blockchain per day.

Coates said the DAU count across all blockchains has increased by 97% year-over-year, which “continues to grow steadily.”

More users means more user fees, which translates to “higher property values,” he said.

“I think some Altcoins are ready for that round 2,” the famous crypto analyst Mustache said in a post on July 15, adding that the most anticipated place could give the necessary background to the launch of Ethereum ETFs.

In a previous post, Mustache shared the following chart showing that the altcoin market is repeating the same setup as 2020 before they started their “powerful wave in the bull run.”

It's still Bitcoin season.

The Bitcoin Dominance chart – measuring BTC's market share relative to the overall crypto market – is one of the indicators used to signal the start of the altseason. For traders, it could jeopardize overall investor sentiment and appetite in the market.

This indicator is It has been on an upward trend since early 2024, reaching a three-year high of 56.5% on April 13. At the time of publication, the dominance of BTC is 54%, which shows that it is still the season of Bitcoin.

This means that altcoins are still underperforming Bitcoin.

According to data from Blockchain Center, only 37% of the top 50 altcoins outperformed BTC in the past three months. Although this is a positive sign, it is still not enough to declare the altcoin season. For an altseason to be declared, this percentage must go over 75 percent.

This means that even if the signs of the altcoin season are starting to converge, it may be too early to make the call.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.