Altcoin is a general term that refers to any alternative Cryptocurrency to Bitcoin. The first altcoins launched in 2011 and today there are thousands of them, many of which have built on the foundations provided by Bitcoin to offer improved features and functionality. Due to this correlation with the original digital currency, changes in Bitcoin’s price trends and market capitalisation often have an impact on the prices of altcoins.
At the time of writing in October 2024, analysts are forecasting an “altcoin season” could be coming before the end of the year or in early 2025, with several key indicators supporting this theory. With online Crypto & CFD broker PrimeXBT, traders can be in an ideal position to capitalise on this opportunity, with some of the best trading conditions on a wide range of Crypto CFDs and Crypto Futures.
Reduced Bitcoin dominance signals altcoin rise
Although Bitcoin has maintained a dominant presence in the market lately, analysts are beginning to see signs that this dominance may be coming to an end. Historically, when Bitcoin’s market dominance falters, the prices of altcoins tend to rally and outpace it in terms of performance. When 75% of the top-performing coins perform better than Bitcoin over a period of 90 days, analysts consider it to be altcoin season. The fact that many popular altcoins have recently been outperforming Bitcoin is one of the signals that have led analysts to forecast that the season may be coming soon.
Ethereum, Dogecoin, NEAR & more outpacing Bitcoin
In the last few weeks, we have seen numerous altcoins outperform Bitcoin consistently, including Ethereum (ETH), Dogecoin (DOGE), and NEAR. All three have seen surges in price following Bitcoin’s latest rebound, resulting in higher percentage gains over certain periods than Bitcoin has been able to achieve. In fact, as of late September 2024, around 72% of altcoins had been beating Bitcoin’s performance for a period of 30 days, a significant increase of 57% when compared to the previous three months. As of mid-October, 52% of the top altcoins have outperformed Bitcoin for the last 90 days.
Additionally, the altcoin market cap has recovered significantly since the lows in August, with it now approaching resistance levels, signalling further potential for a breakout. Analysts predict this breakout could lead to a possible bull run for altcoins, with some even forecasting significant price gains of up to 74%.
Technical indicators bullish on altcoins
The possibility of an impending altcoin season is also supported by multiple technical indicators, including the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI). Both tools are popular among retail and institutional traders and are currently signalling bullish momentum for altcoins due to increased buying pressure. This adds to claims that a breakout for altcoins could be imminent, informing analysts’ predictions of how high prices may go.
Trade Bitcoin, altcoins & more with PrimeXBT
Although the timing of altcoin season can never be guaranteed, the latest predictions of late 2024 or early 2025 mean traders need to be prepared. With PrimeXBT, traders receive competitive conditions on Bitcoin and a wide range of popular altcoins including Ethereum, Dogecoin, and Near. They can choose between trading Crypto CFDs with fees as low as 0.05% or try Crypto Futures, where fees start at an even lower 0.01% for Makers.
No matter which option traders go for, they benefit from leverage of up to 200x, so they can open larger market positions with a smaller initial investment. As leveraged trading involves risk, clients also get access to risk management tools including stop loss and take profit. Additionally, the broker’s all-in-one platform features TradingView chart integration, providing traders with access to advanced technical tools including the MACD and RSI. That way, clients can monitor the market and capitalise on altcoin season when it happens.
Learn more about the altcoins PrimeXBT offers.
Disclaimer: The content provided here is for informational purposes only and is not intended as personal investment advice. Past performance is not a reliable indicator of future results. The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. Virtual assets are inherently volatile and subject to significant value fluctuations, which could result in substantial gains or losses. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money. PrimeXBT does not accept clients from Restricted Jurisdictions as indicated in its website.
