Altseason Pulls Further Away But There is a Caveat

Altseason Pulls Further Away But There is a Caveat

PENGY May 30, 2024, 9:02 pm Facebook Twitter


Altseason

Cryptocurrency markets could witness an “altseason”, but traders and investors should not hold their breath for now, at least for now, as the ETH/BTC trading pair remains bearish.

Altcoin Season Still Not On the Horizon

Altseason, short for altcoin season, is the flow of money or new capital from the Bitcoin and Ethereum markets into altcoins. Consequently, Bitcoin dominance as we know it would decline whereas that of altcoins increases.

During this period, altcoins experience significant price surges so much so that they outperform Bitcoin in terms of value gained. This phenomenon often accompanies a surge in trading volume and overall market activity, driven by increased investor interest in exploring alternative investment opportunities beyond Bitcoin.

Based on the altseason indicator from BlockchainCenter, the possibility of markets pulling back to a Bitcoin season is higher than heading to an altcoin season.

Altcoin Season Index
Altcoin Season Index

Analysts also speculate the commencement of an altcoin season when the ETH/BTC trading pair flips bullish. The chart below shows a bearish outlook. Until this pairing is bullish and the price confirms a reversal, the possibility of an altcoin season will remain hopium for now.

For a confirmed uptrend, the Bitcoin price must reclaim back into the supply zone, extending from $0.0579 to $0.0601. A stable close above the midline (mean threshold) of this order block at $0.0590 would confirm a correction.

For skeptics and the more risk-averse traders, waiting for a change in market structure above $0.0611 would be a good confirmation of the dawn of a bullish phase. A higher high on the Relative Strength Index (RSI) would also confirm this supposition. This momentum indicator has been recording higher highs since March as Bitcoin dominance continues to abound.

As it stands, the odds favor the downside for the ETH/BTC trading pair. The RSI teases with a pending sell signal to be executed once it crosses below the signal line (yellow band).

ETH/BTC 1-day chart
ETH/BTC 1-day chart

Also Read: Bitcoin Whales Make a Comeback as Markets Adjust to New Phase of Scarcity

The post Altseason Pulls Further Away But There is a Caveat appeared first on CoinGape.

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