According to Hashkey Capital’s recent insights, the highly-anticipated altcoin season could set in if bitcoin (BTC) reaches a critical price threshold of $80,000. This price level represents an 11% increase from the trading level of around $72,000.
Altcoin season—a phase when alternative cryptocurrencies or altcoins outperform BTC in percentage price actions or gains—is potentially on the horizon but likely hinges on BTC hitting a crucial price milestone. Notably, BTC has been in an uptrend in the past weeks ahead of the 2024 United States presidential elections, further indicating that October, which just ended, is historically a positive month for the crypto market.
Read also: Introduction to Altcoins: Strengths, weaknesses, opportunities, and threats
Altcoin season could be sparked by bitcoin surpassing $80K
Hashkey Capital suggested in its October 23 report that while BTC has already rallied close to its all-time high of $73,679 on Tuesday, surpassing $80,000 could serve as the trigger for a market shift towards altcoins.
“For a 70% BTC.D, the price would have to reach $108,000, with an average estimate of around $92,000. In an optimistic scenario, altcoin season is more probable when Bitcoin’s price surpasses $80,000,” part of the report said.
Beyond that, Hashkey Capital analysts noted that for an altcoin season to emerge and truly gain momentum, BTC’s dominance in the crypto market might need to climb to a range between 62% and 70%. Bitcoin’s dominance, a measure of its share of the total crypto market, currently sits around 57%, having reached a high of 54% earlier this month since April 2021.
This anticipated increase in dominance could create conditions for altcoins to surge, as investors often shift focus from BTC to other cryptoassets when BTC reaches a significant price milestone or becomes relatively stable after a large rally.
Read also: Are we in Altcoin season yet?
Longest altcoin bear market nears an end
While the possibility of an altcoin season has been a topic of speculation, some market watchers like MN Trading Capital’s Michael van de Poppe believe that the prolonged bear market for altcoins suggests one is overdue.
Historically, altcoin rallies have coincided with BTC hitting new highs and then stabilizing, allowing investors to rotate profits from BTC into alternative assets. Reflecting on historical patterns, he emphasized that the current bear market has outlasted previous cycles, such as the 2014-2016 downturn, leading some to anticipate a rebound.
“This is the longest altcoin bear market we’ve experienced. Longer than the 2014-2016 period, and you’re still here,” Poppe stated in an X post.
On the whole, the question of whether an altcoin season will follow remains contingent on BTC’s next major move. If BTC’s price does surpass the $80,000 mark, it could signal a new wave of investment in altcoins, though this depends on market sentiment and investor appetite for these assets. For now, the $80,000 price level for BTC, as well as its market dominance, are closely watched as a potential catalyst for broader altcoin gains.
Read also: Ethereum and Altcoins: What are the Opportunities in the Altcoin Market?
Credit: Ndianabasi Tom
A crypto journalist and content writer who has been talking about cryptocurrency and blockchain technology since 2018, Ndianabasi is a Writer at Crypto Asset Buyer (CAB).
