Is It Time for Altcoin Season?

The price of Bitcoin (BTC) has dropped significantly over the past few days, even missing a critical support level.

This seems to have fueled investors' hopes that the season of altcoins has begun, but the truth seems to be different.

Bitcoin Slips Dominance

At the time of writing, Bitcoin is hovering around $58,000 after missing the $60,000 psychological support level this week. This caused Bitcoin's dominance (BTC.D) to fall sharply.

BTC Dominance has been seeing uninterrupted macro growth since the beginning of the year. However, the end of June and the beginning of July were not kind to the crypto market, as a result of which BTC.D slipped below the top line. Currently, this dominance is 54.70%.

This has led many to believe that the altcoin era may begin. However, as Bitcoin fell, so did most of the altcoins in the market. Many, like Arbitrum (ARB), have even hit new all-time lows.

Looking at the performance of the top 50 volatile altcoins, we can see that only seven tokens made gains. In total, around 13 tokens managed to top BTC, of ​​which five were losers.

Overall, to start an altcoin season, at least 75% of these 50 tokens, i.e. 38 altcoins, must outperform Bitcoin. Since that is far from the case, it can be said that the market has a little time before seeing the beginning of the altcoin.

Read more: 12 Best Altcoin Exchanges for Crypto Trading in July 2024

How far is the Altcoin era?

The Altcoin Season Index shows that due to market-wide losses, the Bitcoin season is currently active. The index ranges from 0 to 100, and values ​​below 25 are a sign of the Bitcoin Season, and currently, it is at 24.

Read more: Which are the best Altcoins to invest in July 2024?

When this value is above 75, the Altcoin season is considered active, which may take a few months. In the past, it took the market about three months to switch from BTC to Altcoin. If the same gap is evaluated at this time, one can expect that the last one will start in early October.