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Amid the sharp correction in the broader crypto market, the hopes of altcoin season have derailed. Market experts have shared divided opinions on whether this altcoins rally could continue from here. Experts are watching key indicators like Bitcoin dominance to determine when can the next bull run up happen.
Altcoin Season Index Shows Volatility, Bitcoin Dominance Jumps
The Altseason Index has repeatedly moved in and out of full altcoin season territory, signaling ongoing volatility in market sentiment. As shown in the image below, the index shot all the way above 80, and suddenly crashed to 69 levels. As a result, the score is below the official altseason threshold of 75.
Shifts in Bitcoin dominance, the Altcoin Season Index, and overall trading sentiment indicate that the altseason may be short-lived or delayed.
According to TradingView data, the total cryptocurrency market capitalization has fallen from more than $4 trillion in mid-September to $3.82 trillion. Over the same period, Bitcoin’s market share has increased from 57.3% to nearly 59%.
Rising Bitcoin dominance during a market downturn typically signals that altcoins are underperforming relative to Bitcoin. Analysts warn that the trend could intensify if the inverse head-and-shoulders pattern in BTC.D confirms, with a breakout above 59% posing significant risks for altcoins.
These developments have left investors questioning whether the anticipated altcoin season is already losing momentum before it truly begins
Crypto Experts Debate If Real Altcoin Season Will Happen
Crypto analyst Master of Crypto said the concept of an “altseason”, similar to 2021 no longer applies. He noted that during the 2021 cycle, almost every cryptocurrency rallied on the back of genuine innovation. Today, only Bitcoin, Ethereum, and a small group of altcoins have managed to reach new highs.
On the other hand, the analyst said that the broader market is crowded with low-cap, high-fully diluted value (FDV) projects facing constant token unlocks that weigh on prices. Master of Crypto also pointed out that the Fear & Greed Index is currently in the “greed” zone, reflecting overall market sentiment. He warned that many altcoins may struggle to retain value over the next few years.
However, popular crypto analyst Michael van de Poppe stated that the altcoin season is intact. He added that there might be some pain in the short term before it really begins once again. In a message on the X platform, Poppe noted:
“It’s the final correction before the big run, and that’s why I’m staying fully allocated, and that’s why I think that accumulating them here is a great opportunity”.
Altcoins Lead Crypto Market Liquidations
The broader crypto market has entered a sharp correction once again, triggering nearly $530 million in long liquidations, as per the Coinglass data. Largest altcoin, Ethereum (ETH), is once again leading the liquidations, as the ETH price extends its fall under $4,000. ETH alone is contributing $220 million in long liquidations.
Other altcoins like Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) have also corrected more than 5% amid the broader market selloff. This has triggered a major sell-off with altcoin index crashing earlier today.
