Bitcoin (BTC) dominance has experienced a significant 2% drop in the last 24 hours, sparking renewed interest and optimism among altcoin investors. This dramatic shift comes on the heels of a sharp sell-off earlier this week, raising questions about the onset of a new altcoin season.
Over $122 million in leveraged long Bitcoin positions were liquidated as BTC’s price dropped below $61,000, raising the risk of potentially falling below the critical $60,000 threshold.
The BTC Liquidation Heatmap, shared by Credible Crypto on X (formerly Twitter), highlights the largest amount of long liquidations in a single day since April. Negative funding rates imply traders are paying to hold short positions, indicating bearish sentiment.
Altcoin season index. Source : Blockchaincenter
The Altcoin Season Index, a metric used to gauge the relative performance of altcoins against Bitcoin, currently sits at a low of 22 out of 100. This reading indicates that we are still in a Bitcoin Season, but the market conditions are showing early signs of a potential shift.
While there are promising signs of an upcoming altseason, the cryptocurrency market remains inherently unpredictable. Investors should remain vigilant and stay informed about market trends and changes.
It is crucial to thoroughly investigate and analyze altcoin projects when building investment positions to maximize potential gains while effectively managing risks.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
