Crypto specialist Rekt Capital recently elaborated on the altcoin season and offered an evaluation that illustrated why the $425 billion market capitalization threshold is significant. Simultaneously, Mags, another cryptocurrency authority, shared some observations regarding the timing of the upcoming altseason.
Importance of the $425 Billion Threshold for AltSeason
In an X post, Rekt Capital emphasized the $425 billion threshold and provided explanations for why this level could be crucial in assessing the potential for another altcoin season. The analyst pointed out that the alt market cap has indeed experienced a rejection at this $425 billion mark. Nonetheless, he also mentioned some encouraging signs suggesting that the market cap might soon surpass this threshold.
The analyst observed that while the altcoin market cap faced a considerable rejection, the retracement is significantly shallower compared to the previous 69% and 85% declines. Rekt Capital noted that this indicates the $425 billion level is losing its strength as a point of rejection. Therefore, it’s possible that this level could soon transition into support, setting the stage for the emergence of an altseason.
This altcoin season is recognized as a time when many alternative coins surpass the Bitcoin price, while the leading cryptocurrency consolidates during this phase. Crypto analyst CryptoGoos also recently indicated that an altseason may be on the horizon. In an X post, the analyst pointed out that Bitcoin’s dominance has just recorded its highest daily candle closing since 2021.
The analyst then mentioned that history appears to be repeating itself, as altseason typically occurs following peaks in Bitcoin’s dominance. Currently, BTC’s dominance is just above 61%. In the preceding cycle, it peaked around 70% before the commencement of the altcoin season.
Overview of The Altcoin Season Index
Crypto analyst Mags offered insights on when the altcoin season might commence. Initially, he pointed out that the altcoin season index consists of two primary zones: Bitcoin season, when the index reads below 25, and altcoin season, when it exceeds 75. He added that the index peaked on December 7, 2024. Since then, alternative coins have seen a significant downturn.
Mags then referred to historical patterns, noting that when the index falls below 25, it remains there for several weeks or even months before bottoming out and rebound above 75 signaling an altseason. Based on past data, the analyst noted that the index had entered Bitcoin season seven out of nine times between Q2 and Q3, and it usually peaks a few months after the bounce.
Mags expressed that if history is any guide, a vigorous altcoin rally could be forthcoming. Based on the four-year cycle, he remarked that this forthcoming rally could be the final one before the bear market sets in.
Featured image from Adobe Stock, chart from Tradingview.com
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