Hello my fellow bloggers! Today we are going to talk about the hottest thing in crypto – altseason. January was a good month for alts, especially for Di-Fi sector. Some bloggers are speculating altseaon has already arrived. Let’s investigate if this is true.
Source
Before we begin, I want to give two important definitions for those who are new to crypto.
What is an Altcoin Season? If 75% of the Top 50 coins performed better than Bitcoin over the last season (90 days) it is Altcoin Season.
What is an Altcoin Month? If 75% of the Top 50 coins performed better than Bitcoin over the last 30 days it is Altcoin Month.
Altseaon index is calculated based on the above definition. Currently index shows we are in altcoin month as most of the alts outperformed Bitcoin:
Source
Ok, so there is no doubt that January was an altcoin month. Bitcoin hit new all-time high and alts still outperformed it. The main question is can this be the first month on an altseason? First, we need to see the dynamics of altseason index. See the chart below:
Source
There can be no doubt the index left Bitcoin season zone and is moving rapidly towards the edge of Altcoin season zone. Does it mean we are in altseason? I don’t think so. Altseason index is growing to fast as Bitcoin goes sideways and suffers from a small correction (yes, for Bitcoin this is a small correction). Yet the index is growing too fast. At the same time, alts are not starting off. Bitcoin is close to its all-tine high, alts are not even close. If you take a look at altcoins ATH prices in Bitcoin (it is more important to see ATH in Bitcoin as we want to see if altcoins are outperforming BTC or not), you will the sea of red:
Source
This data looks insane. ETH is -72.8% from ATH, ADA -85.6% and BCH -95.7%. Does it look like an altseason to you? For me it doesn’t. The situation may become even worth for alts. Bitcon is gaining momentum. Correction is pretty healthy. Whales are buying more and more BTC with every price drop. Stable coins are purring to exchanges in insane amounts. BTC will go to new heights soon. Altcoins will follow of course, but it doesn’t seem altcoins will outperform BTC, at least not yet.
Disclaimer
I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose.
If you like this post please vote for it and follow my blog. Feel free to share your thoughts in comment section.