Is Altcoin Season Upon Us? Heres What Bitcoins Performance Shows

There is reason to believe that the altcoin season is imminent based on Bitcoins recent price action. Altcoin season is known to be a period when other crypto tokens begin to outperform the flagship crypto token.  Bitcoin To Cool Off For Altcoin Season Crypto analyst Rekt Capital stated in an X (formerly Twitter) post that Bitcoin has only one last Pre-Halving retrace before it goes on a parabolic move post-halving. Crypto analyst Sjuul also highlighted in an X post how the funding rate is mildly high for Bitcoin at the moment, something which hints that a correction was on the horizon.  Related Reading: XRP Refuses To Back Down As Crypto Analyst Identifies When Price Will Rally To $2 With Bitcoin likely to face a significant correction, this presents the perfect opportunity for altcoins to make a run of their own. Ethereum, the second-largest crypto token by market cap, looks set to lead the pack, hitting $3,000 for the first time in nearly two years. Meanwhile, some analysts have noted indicators that confirm that the Altcoin season is not far off.  Crypto analyst Crypto Prof noted that the Gaussian channel on the Altcoins chart has turned green after almost 4 years. Also, these altcoins are said to have broken through the previous resistance from the last weekly close. Crypto Prof further stated that the same thing happened in 2016 and 2020, the period in which the Altcoin bull run started.  Stockmonkey Lizards, another crypto analyst, also mentioned on his X platform that the altcoin is close. In the accompanying chart on his post, he highlighted how the altcoin market cap was going to run to $10 trillion from its current market cap of almost $900 billion.  Investors Increasing Their Risk Appetite  On-chain intelligence platform Glassnode noted in a recent report that their Altseason Momentum indicator has shown a growing appetite from investors to move capital further out on the risk curve. This suggests that crypto investors are more willing to deploy a significant amount of their capital to altcoins in anticipation of greater returns.  Related Reading: Crypto Analyst Predicts 10X Move For Filecoin (FIL) To $70, But Can It Reach ATH? Interestingly, this altcoin indicator is said to have signalled positive momentum since October 2023 before briefly cooling off during the sell-the-news event that occurred after the Spot Bitcoin ETFs approval. However, the indicator is once again signalling this positive momentum having been retriggered on February 4.  Glassnode further revealed that, while Bitcoin dominance remains significant, there are signs that capital is being rotated into other ecosystems like Ethereum, Solana, Polkadot, and Cosmos.  Data from Blockchain Center also shows that the market is gearing closer to an altcoin season. The altcoin season index currently stands at 61%, with a rise to 75% still needed before it can be said that the altcoin season is in full swing.  BTC dominance rises above 53% | Source: Market Cap BTC Dominance on Tradingview.com Featured image from Bitcoinist, chart from Tradingview.com

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Bitcoin Reclaims $27,000, Here Are The Factors Driving The Recovery

  Bitcoin began another recovery trend over the weekend and has been on a bullish path since. This follows last week’s incredible bearish movement which saw the digital asset drop below the $26,000 mark for the first time in over a month. However, the bulls are beginning to pick up steam once more, but what could be driving it? Bitcoin Accumulation Continues Now, while the decline in prices may have been a deterrent for some, others had taken the opportunity to fill up their bags. The ‘Wholecoiner’ movement consists of Bitcoin supporters who aim to get their holdings to at least 1 BTC, making a whole coin. Related Reading: Total Number Of Shiba Inu Addresses In Profit Drops As Market Braces For Impact This trend has been rising over the last few years and recently hit an important milestone over the weekend. As of today, there are now over 1 million addresses that are holding at least 1 BTC for the first time in history, data from on-chain aggregator Glassnode shows. Addresses holding at least 1 BTC cross 1 million | Source: Glassnode The new milestone was reached at a time when cryptocurrencies in the space were bleeding, presenting a unique opportunity for investors to get in at lower prices. The expectation of better prices from here on out, as well as the uncertainty in the banking industry, has also been a driver in this accumulation trend. Naturally, when investors are accumulating coins as they are now, it reduces the supply in the market. A reduced supply creates scarcity and this scarcity can lead to higher prices. So such as scenario could be what played out during the weekend. BTC price recovers above $27,000 | Source: BTCUSD on TradingView.com BTC Investor Sentiment Is On The Rise As the price of Bitcoin declined over the last week, investor sentiment went down with it, causing the Crypto Fear & Greed Index to fall below the 50 level once more. While the index still remained in neutral territory, it was bearish given that just a couple of weeks ago, the index was sitting at high greed. Related Reading: Does The Bitcoin Price Dump Signal The Start Of Another Bear Market? However, as BTC’s price has bounced back, sentiment has followed suit. The index is now sitting at a neutral score of 50. This puts the bears and the bulls at a stalemate, meaning each side would have to show higher strength than the other to swing it in their favor. Despite not being back in green, it is an improvement from yesterday’s score of 48, which was dangerously close to plunging the investor sentiment back into the fear territory. If BTC manages to maintain its current recovery trend, then investor sentiment will grow increasingly positive. However, support at $27,000 is still quite shaky and this means bears could easily take over the market, especially if momentum falls. Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from iStock, chart from TradingView.com

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Bitcoin price thrives in conflict as regional wars escalate

Localized geopolitical conflicts are rising with global risks looming.

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Crypto Funds Vs Bitcoin Holders: Who Was The Better Performer In H1 2023

A new report has shown investors who held Bitcoin actually outperformed most cryptocurrency funds in the first half of 2023. This is because, between January and June, Bitcoin gained over 80% in value.  Crypto funds, on the other hand, on the other hand, returned only about 15.2% profits on average. While still a positive return, [...]

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