Crypto expert Rekt Capital recently discussed the altcoin season and provided an analysis which showed why the $425 billion market cap level is important. Meanwhile, Mags, another crypto expert, provided some insights into when the next altseason could occur.
Why The $425 Billion Level Is Important For AltSeason
In an X post, Rekt Capital highlighted the $425 billion level and provided insights into why this level may be critical in determining if there is another altcoin season. The analyst noted that the alt market cap has indeed rejected from this $425 billion level. However, he added some positives indicating that the market cap could soon break past this level.
The analyst remarked that although the altcoin market cap rejected very strongly, the retrace is much shallower than the previous 69% and 85% corrections. Rekt Capital added that this is an important sign that the $425 billion level is weakening as a point of rejection. As such, there is the likelihood that this level could soon flip into support, paving the way for an altseason to happen.
This altcoin season is known to be a period in which most other coins outperform the Bitcoin price, with the flagship crypto consolidating during this period. Crypto analyst CryptoGoos also recently suggested that the altseason could be imminent. In an X post, the analyst noted that Bitcoin’s dominance just hit its highest daily candle close since 2021.
The analyst then remarked that history is repeating itself as the altseason tends to come next whenever Bitcoin’s dominance tops. BTC’s dominance is currently just over 61%. In the last cycle, it topped at around 705 before the altcoin season kicked off.
Insight Into The Altcoin Season Index
Crypto analyst Mags provided some insights into when the altcoin season could begin. First, he noted that the altcoin season index has two key zones: Bitcoin season, when the index is below 25, and altcoin season, when it is above 75. He further noted that the index peaked on December 7, 2024. Since then, alts have massively declined.
Mags then alluded to historical trends, noting that when the index falls below 25, it spends a few weeks or even months below that level before bottoming out and bouncing back above 75 for an altseason. Based on historical data, the analyst remarked that the index has entered Bitcoin season seven out of nine times between Q2 and Q3, and typically peaks in just a few months after the bounce.
Mags assured that if history repeats itself, there could soon be a strong altcoin rally. Based on the four-year cycle, he remarked that this next rally might be the last one before the bear market begins.
Featured image from Adobe Stock, chart from Tradingview.com
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