Altcoin Season Index Signals Resumption of Bitcoin Rally
As the Altcoin Season Index surged past 60, asset manager VanEck predicts that crypto assets’ price will soar by 70% over the next six months.
Altcoin Season Index: VanEck Makes BTC Price Forecast
The current Altcoin Season Index has attracted the attention of analysts, including asset management firm VanEck, which sees good prospects for Bitcoin in the coming months. The Altcoin Season Index represents the price movement of the top 50 altcoins against Bitcoin.
Historically, when this index exceeds 60, the Bitcoin price often experiences significant growth. Notably, this index has surged by 53% in the past 30 days to 63 points – its highest level in several months.
According to Matthew Sigel, Head of Digital Assets Strategy at VanEck, once the altcoin season index rises above 60, Bitcoin gains around 10% a month later. Often, a rally of 30% is experienced within three months and an increase of 73% within six months.
Taking the current price of Bitcoin, which hovers at $100,728 currently, this projection means BTC could reach up to $160,000 by the middle of 2025.
Altcoin Season Index and Performance of Altcoins
The firm uptrend in the index shows that altcoins are thriving now and would positively reflect Bitcoin’s performance. Similarly, Bitcoin’s good performance often rubs off on altcoins.
Notably, the “store of value” coins such as Litecoin (LTC) and XRP have significantly influenced the altcoin market performance, as the group amassed average returns of 212% over the last 90 days. The return from centralized exchange-issued tokens was 190%, while the meme coins averaged 180%.
Meanwhile, the value of the native tokens of protocols focused on developing real-world asset projects grew 171%.
Will Investor Sentiment Affect BTC Price Action?
The $100,000 price has been a critical resistance level for Bitcoin lately, with many analysts speculating that it has reached its peak and is due for correction. However, VanEck remains confident that Bitcoin’s bull run is far from over, and investors could see significant gains in the months ahead.
Analysts like IncomeSharks have also pointed to strong demand for Bitcoin below the $95,000 level, noting how price wicks in this zone are quickly bought up. This consistent buying pressure indicates strong investor confidence, fueling optimism for further upward price movement.
According to blockchain analytics platform Santiment, a slide to $94,200 triggered a wave of FUD (fear, uncertainty, and doubt), but such a bearish sentiment could be a bullish reversal for BTC. However, spot Bitcoin ETFs continue to see significant inflows, suggesting continued investor interest in the leading cryptocurrency.
Upcoming Market Trends
Renowned crypto analyst Alan Santana believes BTC is showing sideways price action, and the altcoin season will soon start. He added that as long as the $100,000 level remains a resistance point for Bitcoin, it will create good buying opportunities for any investor looking to profit from the next long-term rally.
Hence, Santana suggests ‘buys’ near support and ‘sells’ around the resistance levels since that determines the market direction. Although altcoins have surged impressively lately, Felix Hartmann, the founder of Hartmann Capital, projects a bleaker outlook for many altcoins.
He predicts that most will be on a downtrend until early 2025.
Altcoin Season Index and Bitcoin’s Price
When investor sentiment is strong, the demand for Bitcoin has often been robust, causing the market to enter an expansion phase. Altcoins may face short-term headwinds, but this shall not prevent Bitcoin’s price from scaling upwards, setting the stage for another exciting chapter in the crypto market’s evolution.
Technical indicators show that BTC price remains above the 50-week and 200-week exponential moving average, indicating bullish momentum. Further proof of this momentum is the upward tilt in the average directional index.
Current CoinGecko data show that BTC’s price is up 5.4% in the last 24 hours. This gain coincides with the release of November’s consumer price index report, which was within the 2.7% forecasts.
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