The market circumstances of 2022 caused everyone to suffer significant losses, so cryptocurrency traders are anxiously expecting the revival of a bullish trend. Crypto Lists examines the state of play…
There has recently been a growth in the trade value and quantity of numerous cryptocurrencies, including the well-known Ethereum, the meme-based crypto coins Dogecoin and Shiba Inu, the Ethereum competitors Solana and Avalanche, and many more altcoins.
Since 2020, we’ve seen brief bursts and projections of what’s known as “Altcoin season,” and in 2022, some are again anticipating another one.
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Market indicators of an Altcoin season
The evaluation of the market cap chart for the best altcoins and the resemblance to the previous alt bull sentiment aren’t the only factors driving the ongoing rise in alternative coin prices. Recent data we’ve looked at on BlockchainCenter data indicates that the altcoin season 2022 has indeed just begun.
According to their up-to-date altcoin season chart, the index reached the altcoin dominance area in early August. According to their website,
‘Altcoin Season’ is when 75% of the Top 50 coins outperform Bitcoin over the previous 90 days.
The cryptocurrency season index they developed saw a value of about 98 on August 10. Since the months of April to June 2021, these quantities have not been observed. So, if the indicator stays over the mark of 75 for the ensuing few weeks, a robust altcoin season in 2022 may be on the horizon!
When exploring a 90-day summary of the top fifty cryptos and comparing that information to the price movement of Bitcoin (BTC), it appears that during the current season, BTC lost while the majority of altcoins saw gains or suffered reduced losses.
A surge in short holdings
An increase in short holdings in cryptocurrencies has been observed. Short holdings in altcoins are much more prevalent than long-term transactions. This indicates that more traders are betting on price declines than on price increases. However, historical evidence indicates that such events would often result in a sharp price increase. It is still uncertain whether such a price recovery will occur and whether it will result in an altcoin season.
Ethereum overpowers Bitcoin
The progress of Ethereum (ETH), the largest cryptocurrency, against BTC is yet another sign of a likely altcoin boom in 2022. The analysis of Ethereum in relation to the US dollar found that the value of ETH has been rapidly increasing lately. The RSI may have broken out from the lengthy resistance line and be on its way to rising to the $2100 mark.
Now that we’re examining the relationship to BTC, the weeklong chart offers a further bullish viewpoint. Since bottoming at 0.05 BTC, which originally functioned as resistance, the price of ETH/BTC has been climbing. Validation of this zone was a bullish indication that started the current uptrend.
El crypto prof, a Twitter cryptocurrency analyst, has created a month-to-month chart of ETH/BTC, implying that Ethereum’s worth vs. Bitcoin is about to skyrocket. He found analogies in the fractals of past ascending waves, claiming that today’s price activity matches the beginning 2017 era (orange ellipses).
As per his forecast, ETH might grow 379% from its low point in the following months to attain 0.25 BTC. If this is true, Ethereum’s surge will significantly motivate the altcoin season in 2022.
Although 2022 was a challenging year for crypto investors, its conclusion demonstrated that it might be a fruitful year for the Altcoin season, as there’s an undeniable potential for a boost in the value of altcoins. Fasten your seat belts, for the mother of all movements, is perhaps about to commence. Remember, crypto is highly voliatile and you should only invest what you can afford to lose. Crypto Lists is only providing you with information for educational purposes, and nothing on our site should be taken as financial advice.