The co-founders of market intelligence platform Glassnode are identifying two catalysts that need to line up for altcoin season to officially kick off.
In a new thread on the social media platform X, Glassnode and Swissblock co-founders Jan Happel and Yann Alleman – who together share the handle Negentropic – say that based on historical precedent, altcoin season could start if Bitcoin’s (BTC) dominance levels start to fell and its price stabilizes above $100,000.
“Flashback to February 2021. In the last cycle, February kicked off altcoin season. Could it happen again? Two key factors must align: 1) Bitcoin dominance must decline. 2) Bitcoin must hold a stable price above $100,000. The scenario seems to be shaping up – will history repeat itself?”
However, the duo goes on to note that the top crypto asset by market cap’s recent rise in dominance and price has delayed altcoin season.
“Dominance: 58%+. Price: Holding strong above $100,000. Fundamental news has supercharged this Bitcoin-focused market, delaying an altcoin season for now. Altcoins? We’ll have to wait a bit longer… but the clues are starting to appear.”
Earlier this week, Happel and Alleman said that BTC appears ready to break out based on the Bitcoin Fundamental Index (BFI), which evaluates several aspects of the Bitcoin market, including wallet activity and transaction volume.
At the time, they predicted that the crypto king was en route to a $110,000 price tag but would first meet resistance around $106,000.
Bitcoin is trading for $106,419 at time of writing, a marginal increase during the last 24 hours.
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