The altcoin season is just about to kick off despite the altcoin season index indicator moving away from the altcoin season zone. Historic data shows that when moving averages of the ETH/BTC pair intersect, the altcoins explode.
The altcoin season, where the altcoins outperform Bitcoin, is just about to begin, although the altcoin season index says otherwise.
As shown in the chart below, the ASI has been on a downtrend, moving further away from the altcoin season zone. The ASI indicator is a tool that could be used to gauge where the funds are moving into Bitcoin or altcoins.
As such, the indicator is divided into three zones: the altcoin zone, Bitcoin zone and the neutral zone. 0-25 on the scale is considered as Bitcoin season while 25-75 is considered as the neutral zone. Values above 75 signal indicates an altcoin season.
The ASI indicator has fallen from 37 to 33 in the last few days. It is just not the fall that is concerning but the overall downtrend of the ASI line. But here’s the catch; this indicator has a latency and will not pick up things as and when it happens.
If 75% of the top 50 coins performed better than Bitcoin over the last season (90 days) it is an altcoin season. So, this shows that it takes time for the ASI to move.
However, a crypto netizen who goes by the pseudonym, Moustache, spotted a familiar sight that was visible during the run up to previous altcoin seasons.
When everyone was busy looking at the ASI indicator, Moustache spotted an intersection on the ETH/BTC pair. The netizen spotted that the 100-day Simple Moving Average (SMA) has crossed the 100-day Exponential Moving Average (EMA) bearishly. This is historically a classic sign the altcoin bull market is about to kick off.
