Many in the crypto-community are eagerly awaiting the altcoin season, as well as setting the stage for profits for most of the market.
However, the impending arrival of the season was canceled midway due to the May 2022 crash. In fact, it pushed the season’s arrival forward by several months.
Altcoin Season?
An altcoin season sets in when 75% of the top-50 cryptocurrencies outperform bitcoin. When the reverse of the same happens, bitcoin season unfolds.
Now, as reported by AMBCrypto in late March this year, AltSeason was expected to materialize within the next few weeks. In fact, it even almost happened.
By the end of April, as indicated by the Altsian Index, the market had halved. Just one trigger was needed to accelerate Altsson’s start.
However, the sudden crash of the Terra ecosystem triggered a market-wide crash, bringing the value of all cryptocurrencies below $1 trillion. By extension, this pushed the altcoin season even higher.
Shortly thereafter, bitcoin dominance surged to a 10-month high of 48%. In fact, some are already calling it bitcoin season.
Now, at the time of writing, the market has risen above the threshold of the bitcoin season, due to a gradual recovery over the past three months. This is now giving investors hope for the coming altcoin season.
Alas, this could take anywhere between two to five months, if past changes are taken into account.
It is likely that the season may come only by the end of this year (December 2022). This is because the correlation of bitcoin with the stock index has reached 0.63 for the S&P 500 and 0.59 with the Dow.
Given that the world economy is nowhere close to recovery, BTC will tame the rest of the market as well.
Ergo, the altseason has been postponed by seven months combined with a two-month delay from July and a wait until December.
However, this is not yet a sure-shot buy signal as all the indicators are just flashing a sell signal right now.
For example, the Bitcoin Rainbow chart shows that the next best buy signal will come when BTC nears $27k. Further increase in this will lead to more accumulation.