Analysts are once again predicting an altcoin season as they look ahead to a potential breakout in the crypto market during Q4.
Signs of an altseason
The co-founder of Glassnode, aka Negentropic pointed out the relationship between Bitcoin and alts, and repeated that altcoins have historically followed Bitcoin’s bullish trends.
Right now a pretty significant upswing is likely once Bitcoin breaks its ATH and enters new territory.
Bitcoin now is about 14.5% below its peak, while many alts are over 50%-90% away from their highest values.
“It seems that we are on the verge of an altcoin season.”
Negentropic explained that the typical cycle starts with Bitcoin rising first, followed by Ethereum, and larger-cap altcoins, and finally smaller-cap tokens.
He remarked that since May, Bitcoin saw three upside pushes without triggering an altseason.
The Altcoin Cycle indicator spiked to nearly 50 just before Bitcoin showed strength, suggesting that the next price increase could happen in the same time for both Bitcoin and alts.
Market dynamics are changing, but people are the same
Bitcoin experienced its best September ever this year, with gains nearing 9%.
The plot twist here is this month that is usually quite bearish, but also worth to remember, it’s not over yet!
More analysts, developers and traders shared their thoughts and told that the altseason is coming, and October will be bright.
Another important factor influencing the potential for an altseason is Bitcoin’s dominance in the market.
This rate now stands at a three-and-a-half-year high of 57.5%. Analysts suggest that this dominance may peak soon and could drop below 50%, which would be beneficial for alts.
Too many alts, too much possibility to choose
As of now, the overall crypto market is around $2.31 trillion. There was a tiny decline in the days, but some alts are performing surprisingly well.
Near Protocol surged by 14.5% over the past day. The AI token TAO continues to rise with a weekly increase an almost 84%. Stacks also gained 7%.
