ETH/BTC Ratio Suggests Alt Season May Still Be Distant
CryptoNewsTerminal Staff20 Aug, 2024
ETH/BTC Ratio Suggests Alt Season May Still Be Distant
The ETH/BTC ratio, an indicator of market sentiment towards altcoins, has been trending lower after failing to reclaim the June highs, according to Real Vision analyst Jamie Coutts. Technically, the ratio appears overextended to the downside and may continue to decline as Bitcoin dominance is likely to increase in the coming months. While altcoins are currently testing resistance of their bear channels, only 13% of the top 100 alts by market cap are outperforming Bitcoin. This suggests that altcoins may not be oversold yet, a key condition for a potential alt season. For a true alt season to occur, several conditions must be met. First, alts need to be oversold and out of favor. Second, there should be an increase in global liquidity and a period of Bitcoin weakness to trigger a rotation into alts. Finally, quality altcoins should outperform deep value plays during an alt season.
