The price of Bitcoin (BTC) has dropped significantly below $55,000 today, challenging expectations of the start of an altcoin season. This marks Bitcoin’s worst weekly performance of the year, reminiscent of its price levels from February, four months ago.
This downturn follows a series of events that began when Bitcoin reached an all-time high of $73,803 in March. Factors such as the influx of Spot ETFs, large-scale liquidations, uncertainties around the US elections, and the MT Gox repayments have collectively driven Bitcoin down 21% from its peak.
Several notable altcoins have also suffered double-digit losses, further questioning the anticipated altcoin season.
According to an analysis, the raw buying and selling pressure indicator shows that both pressures are currently balanced. A pullback from this point is expected.
Bitcoin Dominance Adjusting
At the time of writing, Bitcoin’s price stands at $54,308, with a market cap dominance of 55.20%, down from 57% last week after BTC fell below the psychological support level of $57,000. Bitcoin’s dominance in the overall market remains under the uptrend line established at the beginning of the year. BTC.D (Bitcoin Dominance) moving below this line is crucial unless a recovery above it occurs.
Altcoins Lose Momentum
With the decrease in Bitcoin dominance, it was anticipated that altcoins would gain traction. However, the drop in BTC’s price has caused other altcoins to also exhibit bearish behavior. For instance, Arbitrum (ARB) has hit an all-time low during this period of volatility.
An analysis of the 90-day performance of the top 50 coins reveals that only seven have registered gains, and only twelve have outperformed Bitcoin, with four of those still experiencing losses.
Typically, for an altcoin season to commence, at least 75% of altcoins need to outperform Bitcoin. Currently, the numbers do not support this, indicating that the market still requires more time to observe before an altcoin season can truly begin.
When Will Altcoin Season Start?
According to the Altseason Index, a reading of 24 suggests that it is currently Bitcoin season. An index reading above 75 is needed to indicate the potential start of an altcoin season.
Historically, it has taken about three months for the index to shift from below 25 to above 75. If this pattern holds, we might expect the altcoin season to begin in early to mid-October.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
