The top ten altcoin market cap vs. Bitcoin market cap ratio has finally broken out of the bullish falling wedge after trading inside it for almost four and a half years. The altcoin season index and the ETH/BTC pair are all aligning and showing signs of an upcoming altcoin season.
As shown in the chart below, the top ten altcoin market caps against the Bitcoin market finally seem to have broken from their more than four-year-long downtrend.
From a ratio as high as 0.4 in 2022, the market cap of altcoins fell to nearly 0.11 during the past four years. Now that it has reached the bottom, the altcoin market cap could start to move upwards, strengthening against the flagship crypto.
ASI keep its macro uptrend intact
Despite the prevailing geopolitical tensions that have forced the fear-stricken investors to opt for safe-haven assets, the Altcoin Season Index (ASI) is still intact.
The chart below shows that even though ASI has fallen, the macro uptrend is still on display. The ASI indicator moves up and down based on how 75% of the top 50 cryptocurrencies move during the last 3 months compared to Bitcoin. So the macro uptrend shows that the alts are still in play.
It’s not just the altcoin season index which is showing that an altseason could be around the corner, but even the ETH/BTC pair is heading towards a pivotal point, as shown in the following chart.
Altseason is just a gold cross away
The above chart shows how the ETH/BTC pair moves when an altcoin season is about to happen. When the altcoin season is about to take over the market, historic data shows the ETH/BTC pair lags just below the 50-day moving average (short-term indicator) before exploding.
In 2017 the altseason sprung into action after this came up on the charts, and in 2021 the same happened. Currently, the same setup is clearly seen.
The ETH/BTC pair is placed slightly below the 50-day MA, as the short-term indicator approaches the 200-day MA from below. It is highly likely that altcoin season will kick off when these two lines intersect, forming the gold cross.
