Although many analysts and crypto enthusiasts have been discussing the altcoin season, no one has actually been able to determine whether it has already begun or if the market is preparing for it. In this backdrop, a crypto trader identified some promising signals in the market, which could signal the start of the altseason.
The crypto trader who goes by the pseudonym Merlijn The Trader stated, “Altcoins are oversold to the core.” Focusing on the Relative Strength Index (RSI), an indicator that measures the status of the market, Merlijn made this comment.
In his analysis, the “TOTAL3” refers to the total market capitalization excluding Bitcoin and Ethereum, which has hit its rock bottom. And also, the Others/ETH pair has reached its local low. With all these factors put together, the analyst stated that it is during times like these that the altcoin season is born.
In addition to these factors, the Bitcoin dominance and the Altcoin season index are two major parameters that indicate whether it is Bitcoin season or altcoin season.
Bitcoin dominance falls to 57%
The Bitcoin dominance, which is Bitcoin’s market cap as a ratio against the total crypto market, usually falls when the altcoin season is here. From 59% to 57%, the Bitcoin dominance fell while the Ethereum market cap rose to 13.4% and other coins rose to 29%.
Although Bitcoin dominance has fallen, the other parameters have reached their designated limits. The Altcoin Season Index (ASI) is at 59, and the ASI needs to hit 75 for the altseason to kick off.
So the bottom line is that altcoin season has not yet started. However, if you look at the chart above, the ASI line is on an uptrend, and if this trend is maintained, it will be altcoin season before long, as all the other factors mentioned above by the analyst have already been spotted.
