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Altcoin Seasons Occur During Bitcoin’s Strongest Price Surges
Recent analysis by Crypto Nova suggests that altcoin seasons coincide with Bitcoin's strong upward movements, not after its peak.
- Historical data from 2017 and 2021 indicates altcoins perform best during Bitcoin's price surges.
- In 2017, Bitcoin dominance fell as BTC rose from $1,000 to nearly $20,000, with altcoins excelling before Bitcoin peaked.
- In 2021, a similar pattern emerged as Bitcoin's price climbed from $30,000 to over $60,000 while dominance decreased.
The analysis challenges the view that altcoin seasons begin after Bitcoin peaks. Instead, they occur during Bitcoin's strong uptrends when inflows into altcoins increase.
- Bitcoin needs a confirmed bottom and new surge for an altseason to occur.
- Current market metrics show Bitcoin dominance at 58.7%, with an altcoin season index at 19, indicating ongoing Bitcoin season trends.
The focus should be on Bitcoin's market structure rather than just dominance metrics. A shift in Bitcoin's trend is essential for triggering altcoin momentum.