Following the fluctuations in Bitcoin and the subsequent stagnation, the crypto market’s attention has now shifted to altcoins. This period, known as “Altcoin Season,” could lead to altcoins performing better due to Bitcoin’s stagnation.
Until the beginning of the week, Bitcoin was increasing its dominance over other cryptocurrencies, with Bitcoin Dominance (BTC.D) reaching a high of 55.35% before falling to 53.42%. It has been observed several times that the start of the altcoin period follows the peaks and withdrawals of BTC.D.
In bull markets, as money initially moves into Bitcoin, investors can increase the value of the volatile market by reallocating some of their profits into altcoins. The market value index of altcoins, which shows these capital inflows and outflows, is an important indicator for detecting the beginning of the altcoin season.
Well-known crypto and exchange analyst Jelle has confirmed the exit of the altcoin market value from the accumulation range. Jelle’s analysis highlights that the total value of altcoins is currently $723 billion.
According to the analyst’s view, altcoins are currently trading in the “retest” zone. If past cycles repeat, this retest phase could initiate the upcoming altcoin season. Nonetheless, Jelle expects the total market value of altcoins to surpass $1.8 trillion and reach new highs.
However, a failure during the retest phase and a return to the accumulation phase for the index is possible. It should be considered that Jelle’s analysis could be invalidated, and the anticipated altcoin season could be delayed.