according to the materials of the site - By CoinoMedia
The altcoin season index - a popular indicator that compares altcoins to Bitcoin - is sending bullish signals. For several months, altcoins have struggled to withstand Bitcoin's dominance, but the trend seems to be changing. According to the latest charts, altcoins are on the verge of breaking their downward trend against BTC.
This breakthrough is significant. It suggests that capital may begin to flow from Bitcoin into smaller and more volatile coins. Historically, when Bitcoin cools off after a strong rally, traders and investors turn to altcoins in search of higher returns. This shift in momentum often marks the beginning of what is known as the 'altcoin season.'
What is altcoin season?
Altcoin season is a period when most altcoins outperform Bitcoin over an extended time. This is often driven by increased market optimism, the development of new projects, and investors' desire for higher returns than Bitcoin can provide during sideways price movement.
Indicators such as the altcoin season index track this behavior by analyzing the dynamics of the top 50 altcoins. If 75% of them outperform BTC over 90 days, altcoin season officially begins. So far, we have not reached this goal, but the break of the downward trend could be the cause.
If the downward trend against BTC is broken, expect a shift in focus within crypto communities and trading platforms. Projects with strong fundamentals, low market capitalization, and active development may lead. However, this also increases risk, as smaller altcoins tend to be more volatile.
As always, savvy traders will look for confirmations such as increased trading volume and stable dynamics before going all-in. But, judging by the charts that show signs of life, the altcoin market may be preparing for the next big move.
$BTC , $HBAR , $SOL
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