The altcoin season index recently reached the 4% level, its lowest zone since September 2019. The altcoin season index measures the relative strength of Bitcoin compared to altcoins. A low index value reveals that altcoins are weak while BTC is dominant. On the other hand, a high index value reveals that the alt season is near its peak.
Typically, altcoin investors see massive gains against BTC and USDT during the alt season. The recent low on the altcoin index trades around a strong support zone. In line with historical chart data, alts could see a larger price appreciation from this region than Bitcoin in the coming months. However, it would take a lot of time before the alt season is reached.
Altcoin Seasons in 2021 and 2022
On average, Alts usually gain ground against BTC once per annum. The last time altcoins recorded greater gains than Bitcoin was in August last year. ETH rose from the $1700 region to over $2000 during that period. In contrast, Bitcoin only moved from the $19,000 level to above $20,000. Sadly, what seemed like the alt season was cut short by the price crash that followed in November.
In April 2021, during the bull season, altcoins generally experienced a more significant surge than Bitcoin. That month, ETH rose by 33% while BTC depreciated by 2%. Other alts like SAND, MATIC, and SOL also joined the party.
How Bitcoin’s Price Could Impact Alts
Currently, BTC’s dominance is slightly above 46%. Bitcoin’s upward or downward movement from here could significantly determine the value of altcoins in the coming weeks.
However, an alt season could be birthed again if BTC remains relatively stable. In the last few weeks, BTC has traded between $26,000 and $28,000, showing high stability. With the altcoin index ranging around a support zone, technical analysts expect altcoins to outperform BTC from here.
At the moment, BTC is valued at $26,826. Since the start of the year, BTC has appreciated by 65%, and the flagship cryptocurrency has a slightly bullish trend on the weekly charts. The current price zone would be a good range for long-term investors to accumulate more BTC. However, alt fans would be focused more on accumulating altcoins now than before.
