- Bitcoin dominance continues to face key resistance.
- The altcoin season index has reached its highest level in six months.
Bitcoin (BTC) Dominance struggled at a key resistance level of 58%, increasing market optimism for a stronger altcoin season should its market share decline worsen.
Historically, altcoins have boomed when BTC dominance waned.
Since 2023, the dominance of BTC (BTC.D) has increased from 40% to a recent high of 58%.
However, the 58% level also serves as a resistance level which, if not breached, would bring down BTC’s dominance. Most market observers believe such a decline could accelerate altcoin rally.
Source:
Altcoin season hits 6-month high
One of the metrics used to assess the health of altcoin sectors is the ETH/BTC ratio. It measures ETH value compared to BTC.
Additionally, since ETH is the largest altcoin, the ETH/BTC ratio also gauges the overall performance of the altcoin sector.
Source: CoinMarketCap
Since the Fed pivot on September 18, ETH has outperformed BTC. This suggests an improving performance of the altcoin over the same period, which saw BTC dominance fall by 2.5%.
Last week, memecoins showed a massive rebound and led the market recovery, with Shiba Inu (SHIB) take the lead.
On the monthly charts, Sui Network (SUI), Bittensor (TAO)And Popcat (POPCAT) dominated September’s best performance with double- and triple-digit gains.
Source: Blockchain Center
At press time, the Altcoin Season Index while reading was 49, almost neutral, the highest level since March. This highlighted the altcoin’s remarkable performance over the past month.
Despite strong investor interest in altcoins, CryptoQuant founder note this massive rotation of capital from BTC to altcoins had not yet started.
“The rotation of assets from #Bitcoin to altcoins has not started, but buy walls are strengthening overall. I like the calm before the storm.
Source: CryptoQuant
In other words, the altcoin season was gaining momentum and presented upside potential for those with exposure. Ergo, BTC dips could be great opportunities to acquire more “cheap” altcoins with huge potential.
