The new all-time high of Bitcoin has affected altcoins negatively, but statistics from the Altcoin Season Index still favor the latter. The prices of various tokens have rebounded and hit new all-time highs, mostly coming from NFT projects, video games, and memes, among others.
The all-time that Bitcoin reached in October has affected altcoins negatively. Most profits went to the pioneering cryptocurrency, but statistics from the Altcoin Season Index favor the former. The reason for that is that the gains for BTC do not yet exceed those of other tokens.
The data predicted by the indicator showed a midpoint after fluctuating between 25 and 75 points. Therefore, the Altcoin Season Index did not confirm that it is in favor of Bitcoin or altcoins.
Since August 24th, the indicator has shown a strong rebound from 24 to 69 points. However, after the price of Bitcoin rose from USD 50,000 to the current all-time high, the indicator almost fell below 39 points. Besides, the profits of some altcoins reached 65 points.
Analysis of the Altcoin Season Index for Next Month
Bitcoin hit a new all-time high that allowed it not to decrease its dominance by more than 40%. However, the Altcoin Season Index indicates that the following month will favor alternative cryptocurrencies. Various tokens have rebounded and reached new all-time highs, most of which come from NFT projects, video games, and memes, among others.
According to the Altcoin Season Index, the most prominent altcoins in the last three months have been FTM, SHIB, and SOL, among others. FTM leads the market with a 1,350.5% profit, while SHIB occupies the second position in the ranking with 1,350.5%. Finally, Solana (SOL) has accumulated a gain of 660.5% in the same period.
The Altcoin Season Index suggests a period is an altcoin season when 75% of the leading tokens generate a profit percentage higher than BTC. However, the indicator stands at 65 points, which means that Bitcoin has had a significant rebound, outperforming various cryptocurrencies.
Although the price of Bitcoin has rebounded, that does not suggest that the indicator will fall below 25 points. Besides, another factor to consider is the possibility that Bitcoin will continue to follow the Stock-to-Flow (S2F) model. In that case, it could close the year above USD 100,000, thus becoming the cryptocurrency by market capitalization in the ecosystem.
Altcoins May Rebound Thanks to a Pullback in the Price of Bitcoin
The price of Bitcoin fell below USD 60,000 again for the first time since October 15th. Holders had been celebrating the new all-time high of USD 67,200 that it had reached on October 20th. They had already anticipated a correction leading its value to test support levels below USD 60,000.
Several traders announced that the price of Bitcoin had to maintain support at USD 62,000 to avoid falling back to USD 58,000. However, sell orders seem to have outpaced buy orders, sending the cryptocurrency to test demand at the current price of around USD 58,900.
The recent pullback of the pioneering cryptocurrency could contribute to the rebound of the prices of altcoins. However, Bitcoin has always recovered from its worst drops to resume and exceed its all-time highs.
By Alexander Salazar