Opportunity to Buy Altcoins Dips, But 3 Indicators Point to Recovery Potential

On December 4, the altcoin season index reached 88, suggesting that cryptocurrencies other than Bitcoin may outperform leading cryptocurrencies. However, the opportunity for the altcoin season has suffered a major shock. However, it seems that the long-awaited altcoin season may be coming back. Here are three signs that many cryptocurrencies in the top 50 may soon see significant growth. Altcoins Continue to be Restrained The altcoin season is the period when altcoins experience outstanding growth compared to Bitcoin. The altcoin season index measures this trend, determining whether 75% of the top 50 cryptocurrencies are outperforming Bitcoin or not. Normally, a value of over 75 indicates the start of altcoin season, while a value of 25 reflects Bitcoin dominance. However, currently, the index has dropped to 49, indicating the retreat of altcoins as Bitcoin regains a stronger position in the market. Despite this decline, the altcoin season seems to be not over yet. One indicator of this is Bitcoin's dominance rate.

The increasing dominance of Bitcoin often indicates a growing preference for Bitcoin over altcoins, especially during uncertain market phases. This trend shows that investors consider Bitcoin to be a safer choice, thanks to its relative stability and established position in the market. When the dominance ratio increases, the attention to smaller cryptocurrencies may decrease, leading to a potential decrease in capital flowing into altcoins. A few weeks ago, Bitcoin's dominance ratio climbed to 62%, indicating that altcoins may no longer play a secondary role. However, at the present time, this index has dropped to 58.82%, indicating that altcoins have regained some market share. If this decline continues, the price of BTC could decrease while the price of altcoins could skyrocket.

Market Capitalization of Altcoins Can Still Recover TOTAL2 market capitalization, tracking 125 top altcoins, has recently dropped to only 1.35 trillion USD, indicating the weakness of assets other than Bitcoin. This decline often signals a possible delay in the altcoin season, as Bitcoin dominates the market. However, there is still hope when TOTAL2 surpasses a descending triangle, signaling a possible trend reversal. Although the altcoin season may face difficulties at the moment, this breakthrough shows that altcoins may regain momentum if trading volume starts to increase.

If this volume increases, the market capitalization of TOTAL2 could reach USD 1.65 trillion, marking the revival of the altcoin season and potentially boosting the value of these coins even higher. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)