Altcoin Market Cap Surges Past 200-Day EMA: Is Altseason Finally Here?
September 27 2024 - 3:30AM
NEWSBTC
Several indicators point to renewed strength in altcoins,
suggesting a potential altcoin season on the horizon. However, for
confirmation, Bitcoin (BTC) dominance needs to drop further.
Altcoin Market Cap Crosses 200-Day EMA Crypto analysts are closely
monitoring various indicators that track altcoin behavior, with one
critical metric being the 200-day exponential moving average (EMA).
Related Reading: Ethereum Gains On Bitcoin Following Fed Rate Cut:
Altseason Soon? According to the following chart, the OTHERS index
– an index that tracks the market cap of cryptocurrencies excluding
the top 10 digital assets by market capitalization – has surged
past both the 100-day EMA and the 200-day EMA. For the uninitiated,
the 200-day EMA is a commonly used technical indicator that shows
the average price of an asset over the past 200 days, with more
weightage given to recent prices. It’s used to identify long-term
trends – when the price is above the 200-day EMA, it suggests the
asset may be in an upward trend, while being below it signals a
potential downtrend. At present, the OTHERS index sits at
$227.5 billion, while the 200-day EMA and the 100-day EMA are at
$221.8 billion and $212.9 billion, respectively. According to
crypto analyst Caleb Franzen, the last time this occurred was in
July 2023. At the time, altcoins established firm support at these
EMAs to achieve higher-highs. Another cryptocurrency analyst,
Ali Martinez, alluded to the altcoin market cap – excluding BTC and
Ethereum (ETH) – breaking out of what appears to be a long downward
trend. Although Martinez is not fully convinced of a full-blown
altcoin season yet, he dubs the breakout as a “good start.” Bitcoin
Dominance Must Crash Before Altseason While the altcoin market cap
breaking out of a sustained downtrend raises hope for an imminent
altseason, BTC dominance (BTC.D) must drop significantly from its
current levels. Related Reading: Altcoins About To Take Over?
Analyst Suggests Time To Accumulate Will End Soon Currently,
Bitcoin dominance sits at 57.5%. From the chart below, it is
evident that BTC.D has been on a sustained upward trajectory since
at least November 2022. According to crypto analyst Yoddha, BTC.D
looks poised to crash into the mid-40s, potentially paving the way
for a full-blown altseason. Negentropic, co-founder at on-chain
data platform Glassnode, remarked that the market seems to be on
the verge of an altcoin season. Referring to the Bitcoin-Altcoin
Cycle chart from Swissblock, Negentropic notes that once BTC breaks
its all-time high (ATH) and enters price discovery mode, altcoin
should follow suit. The Bitcoin-Altcoin Cycle chart displays
the inverse relationship between BTC and altcoin price movements
throughout the year. Any reading above 50 indicates the market has
entered an altcoin-dominated phase, whereas a reading below 50
signals a BTC-led market. Despite these promising indicators, it’s
important for the leading altcoin, ETH, to rebound against BTC
before capital flows into mid-cap and small-cap altcoins. As
previously reported, the ETH/BTC trading pair is currently at its
lowest since April 2021. At press time, BTC trades at $64,481, up
1.5% in the past 24 hours. Featured image from Unsplash, Charts
from Swissblock Technologies and Tradingview.com
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