According to some market metrics, the time when altcoins shine, commonly referred to as “old season,” could be right around the corner.
Bitcoin burst into flames in 2023 and is up more than 80% year-to-date. However, not much attention has been paid to the altcoins, with only small gains in comparison.
The alt season usually follows a Bitcoin rally, and analysts suspect it could be on the horizon.
On April 16, crypto trader and analyst Skew highlighted a few observations on markets and altcoins.
He noted that altcoins and Ethereum (ETH) led in 24-hour volume. In addition, there was a “major OP [open interest] Switch to altcoins here,” he added.
OI is a measure of the number of active crypto derivative contracts that are still open and yet to be settled.
Altcoin Vol and OI – Twitter/@52kskew
Alternative season approaching?
The analyst also observed that Bitcoin’s dominance was beginning to wane. According to TradingView, BTC dominance has dropped nearly 4% in less than a week. The decline is due to Ethereum’s rally after the successful Shapella upgrade on April 12th.
Bitcoin dominance is currently 47.06% and has not managed to surpass 50% in two years, most recently in April 2021.
BTC Dominance 2023 – TradingView
The analyst commented:
“If BTC dominance wanes, that means altcoin appreciation in the near term. However, as BTC dominance increases, there is a flight to safety in the market.”
In addition, there was a comparison to previous cycles. The analyst explained that there are “some similarities between the bottom consolidation in 2021, when BTC first showed strength before a larger market rally began.”
Furthermore, Ethereum still appears to be leading the altcoins. “If ETH is indeed showing strength here, some altcoins are significantly undervalued,” he said.
Commenting on the Ethereum rally, former BitMEX CEO Arthur Hayes hinted at a return of the alternate season late last week.
Altcoins lackluster
Crypto markets were relatively quiet over the weekend. In the last 24 hours, the total capitalization has been stable at $1.32 trillion.
Altcoins are a mix of red and green, with only a handful making notable moves. Binance Coin (BNB) is up 5% on the day, hitting $350 for the first time since early November.
Additionally, Solana (SOL) is up 6% and is trading at $25.81 at the time of writing. Avalanche (AVAX) is another solid performer, gaining 8.8% on the day to hit $20.83.
The rest of the altcoins haven’t done much, however, so altseason may have to wait a little longer.
Disclaimer
In accordance with the guidelines of the Trust Project, this price analysis article is for informational purposes only and should not be taken as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions.
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