According to some market metrics, altcoin’s time to shine, commonly referred to as “alt season,” may be right around the corner.
Bitcoin is on fire in 2023, gaining more than 80% since the start of the year. However, altcoins haven’t been given much love, with only minor gains in comparison.
An alt season usually follows a rally in Bitcoin, which analysts suggest could be on the horizon.
On April 16, cryptocurrency trader and analyst Skew highlighted a few observations on the altcoin markets.
He noted that altcoins and Ethereum (ETH) were the leaders in 24-hour trading volume. Moreover, there has been a significant shift in OI (Open Interest) to altcoins here, he added.
OI is a measure of the number of active crypto derivatives contracts that remain open and not yet settled.
Alternative season approaching?
The analyst also notes that Bitcoin’s dominance is beginning to decline. According to TradingView, BTC dominance is down nearly 4% in less than a week. The decline is due to the rally of Ethereum after the successful Shabella upgrade on April 12th.
Bitcoin’s dominance is currently 47.06%, and it has failed to reach the top 50% for two years, the last time being in April 2021.
“When BTC Dominance goes down, it means an appreciation of the altcoin in the near term. However, when BTC Dominance gains, there is a flight to safety in the market.”
In addition, there was a comparison to previous courses. The analyst mentioned that there are “some similarities to the 2021 bottom consolidation when BTC showed strength first before the market rallied further.”
Moreover, Ethereum seems to be leading the altcoins as it did before. “If ETH really shows its strength here, then some altcoins are undervalued,” he said.
Commenting on the rise of Ethereum, former BitMEX CEO Arthur Hayes behold In an alternate season return late last week.
Cryptocurrency markets were relatively quiet over the weekend. In the past 24 hours, total capitalization has stabilized at $1.32 trillion.
Altcoins are a mixed bag of red and green, with only a handful making any notable moves. Binance Coin (BNB) gained 5% on the day, reaching $350 for the first time since early November.
Furthermore, Solana (SOL) price is up 6% to trade at $25.81 at the time of writing. Avalanche (AVAX) is another strong performer, adding 8.8% on the day to $20.83.
However, the rest of the altcoins haven’t done much, so an alt season might have to wait a little longer.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.