Is Altcoin Season Upon Us?

CryptoQuant data analysis shows that buying power has been increasing since mid-October.

Popular crypto analyst Ali Martinez believes that altcoin season starts right after Bitcoin halving.

Altcoin season is a period when the market cap of cryptocurrencies other than Bitcoin increases substantially. Altcoin season presents significant opportunities for investors to generate profits.

The Altcoin Season Index surpassed the 75 level at the beginning of 2024. The halving event caused the index to drop to 25.

This was due to concerns about Bitcoin sell pressure. At the time of writing, the index is at 39, suggesting that altcoin season has not yet started.

Technical analysis of the Tether [USDT] dominance chart shows that the downtrend is about to end.

A decreasing USDTD is a positive sign because it indicates that investors are increasing their risk appetite and converting their stablecoins into crypto.

Thus, during an altcoin season, we expect to see a significant decrease in USDT dominance. The chart shows that a decreasing trend has been in place since late October until early April.

This is quite a long period, suggesting that the market will need some time to reset before the next downtrend.

CryptoQuant data analysis of Stablecoin Exchange Reserve shows that buying power has been increasing since mid-October. 

Compared to the 2020-2021 period, the indicator is yet to go parabolic as it did in the previous cycle. 

Therefore, a rapid increase in the Stablecoin Reserve indicator will be a sign that a new altcoin season is upon us.