In the ongoing crypto winter, most investors are looking for indicators and patterns that guide their entry and exit from the market while trying to maximize their profits. One of the patterns being monitored is the altcoin season for alternative currencies, known as altcoins, with indicators that this period may be on the cards.
Notably, as of September 19th, 69% of the top 50 coins have outperformed Bitcoin (BTC) in the last 90 days, highlighting that “altcoin season” is underway. blockchain center data.
In particular, according to the Blockchain Center Altcoin Season Index, altcoin season is declared when 75% of the top 50 coins outperform Bitcoin for three months (90 days). Coins reviewed do not include stablecoins and asset-backed cryptocurrencies.
Bitcoin records negative returns
Among the top 50 coins, LIDO (LDO), a liquid staking solution for Ethereum (ETH), was the best performing altcoin with 222.4% over 90 days, followed by fueling Socios.com fan voting platform Chiliz (CHZ), the token supplying , was at 154.6. %. Elsewhere, Bitcoin recorded a 6.6% loss during the period.
Note that “altcoin season” refers to the phase of the cryptocurrency market when altcoins surpass Bitcoin. However, this is not a guaranteed profit due to factors such as market volatility. Therefore, this season offers crypto investors an opportunity to diversify their portfolios.
For the most part, altcoins usually perform better in bull markets. So many altcoins outperforming Bitcoin could suggest that both assets could go higher.
At the same time, previous altcoin seasons coincided with periods when Bitcoin recorded high market dominance. For the most part, altcoin seasons are usually marked by investors shifting their capital from Bitcoin to other assets.
Bitcoin Plunge Dominance
In this case, a potential altcoin season could be signaled by the recent decline in Bitcoin market dominance as capital flowed into other products. According to CoinMarketCap data, Bitcoin’s dominance is 39.3%.
Additionally, as investors monitor potential signs of an altcoin season, there is a strong focus on correct entry and exit timing. In particular, late entry or exit usually spreads the risk of a trading strategy.
Meanwhile, Bitcoin continues to struggle, consolidating near $20,000. At the time of writing, the flagship cryptocurrency is trading at $18,600 and has lost about 7% in the last 24 hours.
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