Cryptocurrency analysis company Alphractal announced in its latest assessment that the market is clearly in Bitcoin season and that altcoins follow BTC’s movements almost exactly.
The company argued that the high Bitcoin-altcoin correlation is the main factor determining the direction of the market.
According to Alphractal, the poor performance of altcoins relative to BTC over the past 60 days has pushed the altcoin season index downward, leaving the market firmly in Bitcoin Season territory. This has naturally strengthened Bitcoin and stablecoin dominance.
However, analysts point out that such periods historically haven’t lasted long. Historical data suggests that, regardless of whether the market is in an uptrend or downtrend, altcoins begin to outperform Bitcoin after a certain point.
Currently, analysts see a clear picture: Bitcoin is leading the market, while altcoins are merely following. Alphactal noted that particularly rapid and powerful altcoin seasons occur when the correlation between BTC and altcoins turns negative.
Alphractal said that current market conditions support Bitcoin dominance, and a strong divergence in altcoins should not be expected without a clear break in the correlation structure.
Below you can see the correlation chart between Bitcoin and altcoins:
Alphactal chart comparing the performance of Bitcoin and altcoins.*This is not investment advice.
Source: https://en.bitcoinsistemi.com/where-is-this-altcoin-season-according-to-an-analysis-company-without-this-the-altcoin-season-wont-come/
