Altcoin Season Drifts Away as Uptrend Loses Strength

The Altcoin Season is noting declining probability with the changing market conditions as Bitcoin’s price continues to rise.

As most crypto assets remain subdued due to the lack of liquidity in the market, the arrival of this season is further delayed.

Altcoin Season Is Not Close

The Altcoin Season is noting a delay since the market is not supporting a rise in altcoins’ price. The altcoin market’s uptrend is showing signs of weakening, as indicated by the Average Directional Index (ADX). 

The ADX is approaching the critical threshold of 25.0, below which the current trend would lose its strength and indicate a lack of momentum.

Altcoin Market ADX. Source: TradingView

This potential decline in trend strength is a concerning sign. A weakening trend can reduce investor confidence and diminish buying interest, further exacerbating the market’s challenges.

Over the past season, most assets in the altcoin market have struggled to achieve significant growth. Notably, only Toncoin and PEPE have managed to record gains exceeding 50%, highlighting their exceptional performance amidst a largely stagnant market.

Read More: 12 Best Altcoin Exchanges for Crypto Trading in July 2024

Top 50 Crypto Assets Performance. Source: BlockChain Center

The limited growth across the majority of altcoins is a worrisome indicator of the crypto market’s overall condition. If this trend continues, it could lead to increased uncertainty and volatility, impacting investor sentiment and market stability.

Bitcoin’s Dominance Could Not Reach New Highs

Bitcoin’s price rallied to cross the $68,000 mark recently, which led to its dominance rising to 55.49%. The recent fluctuation has resulted in BTC’s dominance forming a symmetrical triangle. This bullish continuation pattern suggests a 4.34% rise is likely that could bring Bitcoin’s dominance to 57%.

Read More: Which Are the Best Altcoins To Invest in July 2024?

Bitcoin Dominance. Source: TradingView

This would further hamper the potential of an altcoin season anytime soon. If the BTC.D fails the pattern, a decline below 54.39% could open the altcoins up to some recovery, triggering an altcoin season.

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