Key Points
- Bitcoin’s price volatility has decreased, potentially allowing altcoins to increase in value.
- The altcoin season index indicates a potential upcoming altcoin season.
Bitcoin [BTC] investors have been eagerly anticipating a surge to $100k. However, recent developments suggest that altcoins might take the spotlight in December 2024.
Bitcoin’s Dominance Declines
In recent days, Bitcoin has been hovering around the $96k mark, leading to a significant drop in its volatility. This decrease in volatility has spurred another significant event.
Crypto analyst Captain Faibik recently tweeted about Bitcoin’s dominance moving within a rising wedge pattern since the start of 2022. Interestingly, the graph broke out of this pattern, but in a downward direction, suggesting a potential rise for altcoins. Captain Faibik even hinted at a 2024-2025 altcoin season in his tweet.
Potential Altcoin Season
The decrease in Bitcoin’s dominance is helping altcoins to increase their market share. Many believe that a new altcoin season may be on the horizon. While it’s likely to occur in 2025, recent trends suggest it could happen sooner.
For instance, Ethereum [ETH], the leading altcoin, has seen a price increase of over 3% in the last 24 hours. Other altcoins with large market capitalizations have also shown promising performances. XRP, for example, has seen gains of over 12% in the last 24 hours.
The altcoin season index has also seen a sharp increase, reaching 67 at the time of writing. A value closer to 75 suggests an approaching altcoin season.
Despite Ethereum’s recent price increase, its NVT ratio remains low. A low NVT ratio suggests that the asset is undervalued, indicating a potential sustained price increase. However, Ethereum’s Relative Strength Index (RSI) is nearing the overbought zone, which could trigger a sell-off and limit further price increases.
While most indicators suggest an upcoming altcoin season, it’s still uncertain whether it will occur in the short term or not.
