Altseason Alert: Signs a Crypto Surge is Coming

Bitcoin recently hit a record high of $73,750 but then dropped to $61,000. This has started conversations among cryptocurrency fans and experts about the possible start of an “Altseason.”

Bitcoin usually starts market cycles with sharp increases. However, the most interesting activity tends to happen when Bitcoin's price stabilizes. This is when other cryptocurrencies, known as altcoins, often start to increase in value. Several factors are making this pattern more noticeable. These include wider use and appreciation of altcoins due to decentralized finance (DeFi), better blockchain technology, and increased use of smart contracts.

Market experts are watching several key signs that could indicate an upcoming altcoin rally. 

One important sign is the 20-day exponential moving average (EMA), which focuses on recent price changes and helps predict rallies. If the EMA shows a bullish trend and the total cryptocurrency market cap also shows similar signs, this could mean a rally is near.

Another sign is the Stochastic RSI, a tool that measures the performance of the Relative Strength Indicator (RSI) over time. A positive sign in this area suggests altcoins could soon see significant price increases.

Bitcoin's market share, also known as Bitcoin dominance, sits at 52.92%. A drop in this number might show that investors are moving their interest to altcoins, potentially kicking off an Altseason.

The total value of altcoins, not counting the top 10, has dropped 17.55% in the last 30 days to $266.47 billion, according to TradingView. Yet, it's still above the $250 billion support level. Trader Rekt Capital believes this indicates the market might be setting up for an upward trend.

Opinions on the likelihood of an Altseason vary. Some analysts think it could lead to a market cap of $4 trillion. Others, like Benjamin Cowen, caution that the market isn't quite showing strong signs of an Altseason yet, suggesting Bitcoin might keep its lead longer.

The Altcoin Season Index by Blockchain Center, which states an Altseason happens if 75% of the top 50 coins beat Bitcoin over 90 days, currently shows only 41% have done so. This means we are not officially in an Altseason yet.

Despite signs of a possible Altseason, the cryptocurrency market is unpredictable. Investors should keep a close eye on market trends and research altcoins carefully before investing to manage risks and aim for the best gains.