After all optimistic predictions were made during the Altcoin season at the beginning of September, the latest data shows signs of the opposite.
Bitcoin domination, Altcoin season index, and trading sentiment movements suggest that the Altcoin season could end later or earlier than expected.
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Bitcoin’s regaining control raises concerns about delays
TradingView data shows that Crypto’s total market capitalization has fallen from over $4 trillion to $3.82 trillion since mid-September. At the same time, Bitcoin domination (BTC.D) rose by nearly 59% from 57.3%.
Bitcoin’s domination measures the share of Bitcoin’s total crypto market capitalization. The increase in BTC.D during the decline of the market overall indicates that altcoins are falling faster than Bitcoin.
From a technical standpoint, analysts believe that BTC.D can continue to climb as the reverse head and shoulder patterns are seen. A breakout of over 59% is an Altcoins nightmare scenario.
As a result, many investors have questioned whether the barely ongoing Altcoin season has already been postponed.
“Bitcoin’s advantage is being pumped up again! Money is spinning into Bitcoin! Was the alto season late?” reported Whale.
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Additionally, the Altcoin season index fell to 69, below the 75-point threshold that confirms the AltCoin season.
If capital continues to close Altcoins, the index may fall deeper. Dreams of the biggest altcoin season in history may even be further apart.
The market sentiment index has shifted from neutral to fear. This indicates the risk of panic sales when fear escalates into extreme fear.
A recent Beincrypto report highlighted the inconsistencies of the September Altcoin season. Investor capital is not spreading across tokens, but the market is oversaturated with too many coins.
“There’s no longer a day to buy coins and wait for the entire market to rise. There are currently too many coins, and there’s not enough liquidity or attention to all coins pump at the same time,” said Ashrobin, founder of Kanto Lab.
Despite the weaker indicators, many investors still believe that a larger altcoin season is ahead. Optimism stems from the expectation that the Fed’s rate cuts and potential approvals of multiple Altcoin ETFs (withstanding new SEC standards) will spark the next big wave.
