How Bitcoin’s dominance affects the all-season schedule
Many in the crypto community are eagerly awaiting the altcoin season, and the same is expected to lay the foundation for profit for most of the market.
However, the impending arrival of the season was canceled midway due to the crash in May 2022. In fact, it pushed the income of the season by several months.
Altcoin season?
An altcoin season starts when the performance of 75% of the top 50 cryptocurrencies is better than Bitcoins. When the opposite of the same thing happens, the Bitcoin season comes to the fore.
Now, as reported by AMBCrypto towards the end of March this year, the altseason was expected to materialize over the next few weeks. In fact, it almost did too.
At the end of April, the market was halfway, as the altseason index indicates. All it needed was a trigger to trigger the start of the all-season.
However, the sudden crash in the Terra ecosystem caused a market-wide crash, dropping the value of all cryptocurrencies below $ 1 trillion. In the long run, this led to even more pressure on the altcoin season.
Altcoin season index | Source: Blockchain Center
Shortly afterwards, Bitcoin’s dominance increased to a 10-month high of 48%. In fact, some are already calling it a Bitcoin season.
Bitcoin dominance | Source: TradingView – AMBCrypto
At the time of writing, the market had risen above the threshold for the Bitcoin season thanks to gradual recovery over the past three months. This now gives investors hope for an upcoming altcoin season.
Alas, the same can take anywhere between two to five months, if previous transitions are taken into account.
It is likely that the alt season can only come by the end of this year (December 2022). This is because the correlation between Bitcoin and stock indices has reached 0.63 for the S&P 500 and 0.59 with the DOW.
Bitcoin stock index correlation | Source: Blockchain Center
Given that the world economy is not improving, BTC will also keep the rest of the market subdued.
Ergo, combined with the delay of two months since July and a wait until December, the all-season has been postponed by seven months.
However, this is not a safe buy yet, as all indicators are just flashing a sell signal right now.
For example, the Bitcoin Rainbow Chart revealed that the second best buy signal would come when BTC is closer to $ 27k. An additional hike in the same would lead to more accumulation.
Bitcoin Rainbow Chart | Source: Blockchain Center
