Cryptocurrency analysis firm Alphractal has shared its latest views on Bitcoin and altcoins, assessing whether an altcoin season is on the horizon.
The Altcoin Seasonal Index recently fell to its lowest level since June 2023, signaling a prolonged period of poor altcoin performance over the past 60 days.
Bitcoin dominance remains above 60%, according to the analytics firm, while altcoins have significantly underperformed. However, this could be an advantage for investors as many altcoins have seen a sharper decline than Bitcoin. XRP and LTC in particular have outperformed BTC in terms of overall performance, according to the analysts.
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According to the analytics company:
- A Bitcoin rally could spark rapid gains, especially in altcoins with strong communities, high trading volume, and low valuations relative to BTC.
- Historically, the Altcoin Season Index can remain in the Bitcoin Season zone for extended periods of time, meaning that a change may not occur immediately.
- Bitcoin’s yearly performance remains modest, lacking the bullish momentum seen in past market cycles.
- The 3-month performance is approaching negative territory, which historically indicates a period of sideways consolidation or decline.
- The Price Drop from ATH indicator points to a similar pattern to previous cycles. Further inactivity could undermine both its yearly and 3-month performance, as Bitcoin has not reached a new all-time high since January 21, 2025.
Chart showing that the Alphactal metric is currently in the Bitcoin Season area. *This is not investment advice.
